Differences between a 25K and 10K AMB Savings Account

Meet Ankit, a young salaried professional who recently started his first job. He wants a savings account that gives him good returns while keeping his money accessible. On the other hand, Priya, a freelancer, needs a flexible banking option with minimal maintenance costs. Both are considering an IDFC FIRST Bank Savings Account but are unsure whether to go for the ₹25,000 average monthly balance variant or the ₹10,000 average monthly balance variant. 

If you’re in a similar situation, this guide will help you compare both options and decide which suits you best.  

IDFC FIRST Bank Savings Accounts – an overview
 

A savings account is more than just a place to park your money. The right choice can make banking hassle-free. IDFC FIRST Bank Savings Account provides a customer-first banking experience, offering high interest rates, seamless digital banking, and zero-cost benefits that make everyday banking hassle-free. Focusing on convenience, transparency, and superior service, the bank ensures customers enjoy world-class banking with bespoke solutions.

IDFC FIRST Bank offers savings accounts with two options – ₹25,000 and ₹10,000 average monthly balance variants.

What is the average monthly balance?
 

The average monthly balance, often referred to as AMB, is the amount you must maintain in your account over a month. It is calculated by adding the daily closing balances of your account throughout the month and dividing that total by the number of days in the month.

Average monthly balance = Sum of closing balances/Number of days in the month

Comparing features of ₹25,000 vs. ₹10,000 average monthly balance variants
 

Here’s how these two variants stack up against each other –

1. Interest rate benefits
 

IDFC FIRST Bank offers an attractive interest rate of up to 7.25% p.a. Maintaining a higher minimum monthly average balance allows you to earn more interest over time. With monthly interest credits, your interest compounds more frequently, accelerating your savings growth.

For example, if Ankit maintains ₹25,000, he earns more interest than Priya, who keeps ₹10,000. The compounding effect helps grow his savings faster. 

Want to see how much interest you can earn? Try the savings account interest calculator now.

2. Fee structure
 

Both average monthly balance variants offer zero fees on commonly used services like fund transfers and ATM withdrawals as long as the respective balance is maintained. However, falling short of these balances can lead to penalties –

Since both variants have the same penalty calculation, the financial impact of failing to maintain the required balance is proportional to the shortfall. So, if you struggle to maintain a higher minimum monthly balance, a ₹10,000 average monthly balance variant reduces penalty risks.

3. Debit card benefits 
 

Here's how the ₹25,000 and ₹10,000 average monthly balance variants of savings accounts with IDFC FIRST Bank compare –

The ₹25,000 option provides additional perks such as airport lounge access, higher purchase limits, and more comprehensive protection coverages. It may appeal to customers like Ankit, who can prioritise enhanced card features.

4. Value-added benefits 
 

Both variants of savings accounts with IDFC FIRST Bank offer the same value-added benefits, ensuring that customers enjoy essential perks regardless of their chosen option.

Additionally, the type of debit card—VISA or Mastercard—can provide different exclusive offers, which you can explore further here.

How to choose the right variant for you 
 

Here’s how you choose the right average monthly bank balance for you –

a. Who should consider the ₹25,000 average monthly balance variant?
 

This variant is best for –

i. Salaried professionals with a steady income and higher savings capacity

ii. Freelancers or consultants who maintain a healthy balance for business transactions

iii. Small business owners who use their accounts for bulk transactions and payments

iv. Frequent travellers and premium service seekers who value high ATM limits and exclusive rewards

For someone like Ankit, who can comfortably maintain ₹25,000 without impacting his monthly expenses, this account is a smart choice.

b. Who should consider the ₹10,000 average monthly balance variant?

This option is best suited for – 

i.Students or freshers starting out in their careers

ii. Freelancers or gig workers who prefer flexibility in maintaining their bank balance

iii. Retirees or homemakers who want a simple savings account without high balance commitments

iv. Anyone who wants to build their savings gradually without worrying about a high minimum average balance requirement

For Priya, maintaining a balance of ₹10,000 is more practical, as her income flow is irregular. She prioritises flexibility over premium features.

#Checklist – Which savings account should you pick? 

• Do you receive a steady salary? → ₹25,000 AMB 
• Do you have fluctuating income? → ₹10,000 AMB 
• Do you shop and travel frequently? → ₹25,000 AMB 
• Do you need a basic, flexible account? → ₹10,000 AMB

Many people hesitate to commit to a higher minimum monthly average balance, but here’s why it’s a smart financial move –

1. Higher interest earnings – More money in your account means you earn better returns.
2. Premium banking benefits – Enjoy high-value debit cards, free ATM withdrawals, and rewards.
3. Better financial discipline – Encourages consistent saving habits.

Easy steps to open an IDFC FIRST Bank Savings Account 
 

You can open the bank account either digitally or in person.

1. Online application


Follow the below steps to open an IDFC FIRST Bank Savings Account online –

a. Step 1 – Visit the IDFC FIRST Bank website or click here to open your savings account online  

b. Step 2 – Fill in your details and upload your Aadhaar and PAN documents.

c. Step 3 – Select your average monthly balance variant – ₹ 25,000 or ₹ 10,000.

d. Step 4 – Fund your account online

2. Offline application  

Opening an account with IDFC FIRST Bank is easy, even offline. Here's how –

a. Step 1 – Visit your nearest IDFC FIRST Bank branch.  

b. Step 2 – Submit KYC documents as follows –

i. Passport-size photograph

ii. PAN Card (mandatory if you have one)

iii. Any one of – Aadhaar card, passport, voter’s identity card (election card, or permanent or valid driving licence with a photograph

c. Step 3 – Fund your account and receive your welcome kit.  

Ready to take the next step?
 

Choosing between a ₹25,000 average monthly balance and a ₹10,000 average monthly balance depends on your financial habits. Assess your ability to maintain the required balance and consider which benefits align with your needs. Choosing the account that fits you best can maximise your savings and help you enjoy a range of banking benefits.

Compare and open your IDFC FIRST Bank Savings Account today! Apply now.