Archive · 10 Jan 2026
IDFC First Bank Cuts Savings Account Interest Rates
IDFC First Bank has lowered the interest rates on savings accounts starting January 9, 2026.
The biggest cuts, up to 200 basis points, affect smaller and mid-sized balances.
For example, if you have between Rs 1 lakh and Rs 10 lakh, you'll now earn 5% interest instead of the previous higher rates.
The bank kept the rates the same for very large balances, like those above Rs 10 crore.
The interest is calculated daily based on your account balance and is added to your account every month.
Remember, the interest you earn is taxable, but you can deduct up to Rs 10,000 (or Rs 50,000 if you're a senior citizen) from your taxes.
IDFC First Bank reduced savings account interest rates by up to 200 basis points for small and mid-sized balances effective January 09, 2026.
The minimum balance requirement is Rs 10,000 for rural branches and Rs 25,000 for urban branches.
Balances above Rs 10 lakh and up to Rs 10 crore now earn 6.5%, down from previous higher rates.
Deposits above Rs 100 crore continue to earn 4%, with rates of 6% and 5% for balances between Rs 10 crore to Rs 25 crore and Rs 25 crore to Rs 100 crore, respectively.
Interest is calculated daily based on the closing balance and credited monthly, with tax deductions available up to Rs 10,000 for individuals and Rs 50,000 for senior citizens.
- Who
- IDFC First Bank
- What
- Reduced interest rates on savings accounts
- When
- Effective from January 09, 2026
- Where
- India
- Why
- To adjust interest rates across various balance slabs
- Bank
- IDFC First Bank
- Effective Date
- January 09, 2026
- Rate Reduction
- Up to 200 basis points for small and mid-sized balances
- Minimum Balance (Rural)
- Rs 10,000
- Minimum Balance (Urban)
- Rs 25,000
- Highest Savings Rate
- 6.5% for balances above Rs 10 lakh and up to Rs 10 crore
- Interest Calculation
- Daily closing balance, credited monthly
- Tax Deduction Limit (Section 80TTA)
- Rs 10,000 for individuals, Rs 50,000 for senior citizens