Earn monthly interest pay-outs on Savings Account

You can now grow your savings with IDFC FIRST Bank’s Monthly Interest Credits facility on your Savings Accounts! Make the best of your savings with the power of compounding, month-on-month

Every month brings with it a varying amount of expenses. At times, bills and the EMIs in a month can become a burden on an individual’s savings. In such a scenario, a monthly interest pay-out is a feature that can help individuals with their savings. Since July 2021, IDFC First Bank has launched a Monthly Interest Credits for savings accounts, which offers customers a lot more benefits besides the monthly returns.

What is a Monthly Interest Credit?

A monthly interest payout is a credit amount you get at the end of every month on your savings. This feature is commonly available with fixed deposits. With this feature, you get an assured interest every month after opening a savings account with IDFC FIRST Bank. The amount will depend upon your account balance and the interest rate that you are offered.

How do interest payouts on Savings Account work?

According to the RBI guidelines, the interest that banks give their customers on their savings account is calculated on a daily basis. This interest gets accumulated and is credited to your account on a quarterly or a half-yearly basis, depending on the type of account you have and your bank’s set of guidelines. It was in 2016 that RBI had made the guidelines of crediting quarterly interest on savings accounts, as opposed to the earlier rule of half-yearly credit.

The formula used to calculate this interest is:

Accumulated interest = (Daily Balance) * (Number of days) * (Interest) / (No. of days in the year)

What is IDFC FIRST Bank offering that’s unique?

If you opt for opening a savings account with IDFC First Bank, you can get monthly interest on a savings account of up to 7.25% p.a. With IDFC FIRST’s interest rates on saving account and its monthly interest credit, you will be earning interest on interest. This means that your savings will be compounded monthly, allowing you to earn on your savings.

With IDFC FIRST Bank’s monthly interest credits facility, you reap benefits like none other – all thanks to the power of monthly compounding interest. The Interest is credited to your Savings Account on the 1st of every month. So, the following month, you earn interest on your balances, including interest on your previous month’s interest. And so on! Thus, you earn interest on interest, resulting in much higher earnings for you. The additional interest earned, which credit-worthy customers like you deserve, can exponentially increase your savings in the long run.

While most banks offer their customers quarterly interest credits, IDFC FIRST Bank adds a little more joy to your savings every month with higher interest credits. We ensure that you receive maximum benefits with the power of compounding. We truly believe, that when you pay interest every month, you deserve to reap the benefits of your savings on a monthly basis too!

Besides this, you also get a lot of special benefits on opening a digital savings account with IDFC First Bank. Some of these special benefits are:

1. Personal accident insurance

If your average monthly balance is Rs 10,000, you will receive personal accident insurance of Rs 2 lakhs, and for an average monthly balance of Rs 25,000, the insurance provided will be for Rs 35 lakhs.

2. Air Accident Insurance

If your average monthly balance is Rs 25,000, you can also get air accident insurance of Rs 1 crore.

3. Purchase Protection

You can enjoy a special feature of purchase protection on having an average monthly balance of Rs 25,000.

With the rising prices and expenses, simply saving your money will not be enough. You will need an assured return on your savings to be able to cope with them. In such a scenario, getting monthly interest returns on just a savings account seems like the simplest way to ensure that your savings grow. So, make the best of your earnings and begin growing your savings with a savings account at the earliest.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.