IDFC First Bank has hiked the interest rate on savings accounts. Customers can now earn up to 6 percent interest, up from 5 percent on their savings accounts. As per Reserve Bank of India guidelines, interest will be calculated every day on the balance in the account. Interest on savings bank accounts will be paid monthly. Interest will be calculated on progressive basis in each interest rate slab as applicable.
As per the revision, IDFC First Bank will now provide 4 percent interest on savings account balances of less than Rs 1 lakh, 4.50 percent on balances of up to Rs 10 lakh, and 5 percent on balances of more than Rs 10 lakh but less than Rs 25 lakh. Savings account customers will receive a maximum interest rate of 6 percent on balances of more than Rs 25 lakh but less than Rs 1 crore with effect from April 1, 2022.
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How does progressive balance work?
- For savings account balance of Rs 25,000, one would get 4 percent interest on the total amount.
- For savings account balance of Rs 5 lakh, one would get 4 percent interest on Rs 1 lakh, and 4.5 percent on the remaining Rs 4 lakh.
- For savings account balance of Rs 1.10 crore, one would get 4 percent interest on Rs 1 lakh, 4.5 percent on Rs 9 lakh, and 5 percent interest on the remaining Rs 1 crore.
- For savings account balance of Rs 5.3 crore, one would get 4 percent interest on Rs 1 lakh, 4.5 percent interest on Rs 9 lakh, and 5 percent interest on the remaining Rs 5.2 crore
