IDFC First Bank has announced a hike in its interest rates on savings bank deposits. This announcement comes after the RBI announced a hike in its repo rate by 25 bps to 6.50% in its latest MPC meeting to be held on 8 February 2023. IDFC First Bank savings account customers can now avail an interest rate of up to 6.75%. Of the revisions made on Wednesday, IDFC First Bank mentioned on its website that the new savings account interest rates are effective from February 15, 2023.
IDFC First Bank Savings Account Interest Rates
Balance in savings bank account up to 10 Lakhs, the bank is now offering an interest rate of 4.00% over and above the savings bank account balance up to 10 lakh 1 crore, IDFC First Bank will now offer an interest rate of 6.25%. IDFC First Bank’s savings account customers will now get 6.75 per cent interest on account balance above Rs. up to 1 crore 50 crores.
Balance in savings bank account is more up to 50 crores 100 crores, the bank will now promise an interest rate of 5.00%, while the balance above this in the savings bank account 100 Cr to 200 Cr, IDFC First Bank will pay an interest rate of 4.50%. The bank will pay interest at the rate of 3.50% on the balance of the savings account 200 crores.
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Interest on savings accounts will be calculated on a progressive basis, as per the above rate slabs. “As per Reserve Bank of India instructions, savings bank account interest will be calculated on the balance at the end of the day at the rate of interest specified by IDFC First Bank from time to time. Periodicity of payment of interest on savings bank account is on monthly basis. Interest will be calculated on the progressive balance in each interest rate slab as applicable,” said IDFC First Bank on its website.
IDFC First Bank Interest Rate Slab as per progressive balance
IDFC First Bank on its website has cited the examples below using which customers can calculate the progressive balance amount in each applicable interest rate slab.
1. If we have Rs. 25,000, the interest payable to you would be 4% on the entire Rs. 25,000.
2. If we have more than Rs. 5 lakh, the interest payable to you would be 4% on the entire amount of Rs. 5 lakhs.
3. If we have more than Rs. 1.10 crore, the interest payable to you would be 4% on Rs. 10 lakh, 6.25% on Rs. 90 lakhs and 6.75% on 10 lakhs.
4. If we have more than Rs. 5.3 crore, the interest payable to you would be 4% on Rs. 10 lakh, 6.25% on Rs. Rupee. 90 lakhs at 4.3 crores and 6.75%.
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