Savings Account Interest Rate: IDFC First Bank has revised its savings account interest rates. The new rates are effective January 9, 2026. Deposits between ₹10 lakh and ₹10 crore will earn 6.5% interest.
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Savings Account Interest Rate: IDFC First Bank has revised its savings account interest rates. The new rates have come into effect from January 9, 2026. The bank has retained its progressive interest rate structure. Under this structure, savings up to Rs 1 lakh will earn 3% interest annually. 5% interest will be paid on amounts above Rs 1 lakh and up to Rs 10 lakh. The highest interest rate of 6.5% will be applicable on amounts between Rs 10 lakh and Rs 10 crore. The interest rate will gradually decrease for balances above this, and amounts above Rs 10 crore will earn a lower rate of interest.
What is a progressive interest structure?
A progressive interest structure means that the higher interest rate applies only to the portion of the balance that falls within that slab, not the entire balance. For example, if you have Rs 10 lakh in your savings account, the bank will pay 3% interest on the first Rs 1 lakh and 5% interest on the remaining Rs 9 lakh. Similarly, if you have Rs 1 crore in your account, you will earn 3% interest on the first Rs 1 lakh, 5% interest on the next Rs 9 lakh, and 6.5% interest on the remaining Rs 90 lakh. This system benefits customers who maintain higher balances in their accounts, as the additional amount earns better returns, while those in the lower balance slab are not affected.
Regarding interest calculation and payment, the bank stated that, in accordance with RBI guidelines, savings account interest is calculated based on the daily end-of-day balance and credited to the account every month. IDFC First Bank calculates interest based on 365 days in non-leap years and 366 days in leap years. The final interest amount is rounded off to the nearest rupee.
According to the bank, the revised interest rates may particularly benefit account holders with large balances. However, it also states that savings accounts are primarily beneficial for liquidity. For surplus funds that are not immediately needed, liquid mutual funds can offer better returns and easier access to funds. These funds invest in short-term debt instruments and focus on capital preservation, making them a more effective option than excess cash sitting in a savings account.
