Your guide to IDFC FIRST Bank Savings Account: Top 10 FAQs answered

Sanjana, a young professional, has recently started her career in the IT and software industry. As she commences her first job, she is keen to take charge of her finances and set some of her earnings aside for her future goals. However, with so many banking options available, she feels overwhelmed and wonders if IDFC FIRST Bank is the right fit for her requirements.

Are you also navigating through various banking solutions and contemplating opening a savings account? This guide will answer the top ten frequently asked questions (FAQs) about IDFC FIRST Bank Savings Accounts and help you make an informed decision. 

Top 10 FAQs about IDFC FIRST Bank Savings Accounts
 

Let's get right to the heart of what you need to know to make the best choice for your savings.

1. What are the different types of savings accounts offered by IDFC FIRST Bank?
 

IDFC FIRST Bank offers the following types of savings accounts –

   i. Regular Savings Account

   ii. Senior Citizen Savings Account

   iii. Women's Savings Account – FIRST Power

   iv. Minor Savings Account

   v. Corporate Savings Account

   vi. Honour FIRST Defence Account

   vii. Nation FIRST Salary Account

   viii. Vishesh Savings Account

   ix. Pratham-Savings Account

   x. Savings Account with Auto-Sweep facility

   xi. NRI Savings Account

2. What are the benefits of having an IDFC FIRST Bank Savings Account?
 

With IDFC FIRST Bank, you can enjoy certain benefits of a savings account, such as – 

a. Boost your savings with competitive interest rates

With the help of the IDFC FIRST Bank Savings Account, you can leverage zero charges and high interest rates of up to 7.00% p.a. and fulfil your financial goals. 

b. Monthly interest credits

Earn monthly interest on your savings account instead of every quarter. Savings accounts with monthly interest credits compound the interest earned more frequently as time passes. The compounding effect of interest means that your account balance will grow rapidly over time. This is because you will earn interest on interest in addition to the principal amount.
 

c. Zero fees banking on commonly used savings account services

Enjoy zero fees on all savings account services, including free fund transfers, ATM withdrawals, and demand draft issuance with your IDFC FIRST Bank Savings Account.
 

d. Access 250+ mobile banking services at your fingertips

Enjoy an award-winning, all-in-one app, where you experience universal search, goal-based investing, bill payments and recharges, Account Aggregator, spends categorisation, UPI on credit cards, rewards and redemptions, and much more.

IDFC FIRST Bank is also India's first bank to offer a single sign-on app for business customers, offering bulk payments, income tax, GST, customs duties, and connected banking.

e.  Enjoy exclusive discounts and cashback

Get discounts and cashback offers with your savings account debit card, including deals at restaurants and brands. With the IDFC FIRST Bank FIRST Rewards program, earn points on daily purchases and easily redeem them for exciting rewards.

f. 24X7 customer support whenever you need it

Customer support is available 24X7 for the ultimate user experience. Get your queries resolved efficiently on a call or via WhatsApp.

1. What is the minimum balance required to maintain the account?
 

Here's a breakdown of minimum balance requirements with IDFC FIRST Bank –

i. Savings Account – ₹10,000 to ₹25,000 (depending on the variant you choose)

ii. Honour FIRST Defence Account – NA 

iii. NRI Savings Account – ₹25,000

iv. Minor Savings Account – NA (only applicable to savings accounts maintained under a guardian)

v. Senior Citizen’s Savings Account – ₹10,000 to ₹25,000 (depending on the variant you choose)

vi. Pratham-Savings Account – Nil 

vii. Vishesh Savings Account – ₹5000

viii. Savings Account with Auto-Sweep facility – ₹25,000

ix. FIRST Power Savings Account (for women) – ₹10,000 to ₹25,000 (depending on the variant you choose)

x. Corporate Salary Account – NA

If your balance falls short, a fee of 6% of the shortfall or ₹500 (whichever is lower) applies.

2. How do interest rates work for the savings account?
 

It's important to understand the difference between simple and compound interest, as it directly affects how much your money grows.

Let's say you deposit ₹1,00,000 into a savings account with a 5% annual interest rate for 5 years.

Simple interest calculation –

1. Interest earned per year = ₹1,00,000 × 0.05 = ₹5,000
2. Total interest earned over 5 years = ₹5,000 × 5 = ₹25,000
3. Total amount after 5 years = ₹1,00,000 + ₹25,000 = ₹125,000

Compound interest calculation (compounded annually) –

1. Total amount after 1 year = ₹1,00,000 × 1.05 = ₹105,000
2. Total amount after 2 years = ₹1,05,000 × 1.05 = ₹110,250
3. Total amount after 3 years = ₹1,10,250 × 1.05 = ₹115,762.50
4. Total amount after 4 years = ₹1,15,762.50 × 1.05 = ₹121,550.63 (approximately)
5. Total amount after 5 years = ₹1,21,550.63 × 1.05 = ₹127,628.16 (approximately)
6. Total interest earned - ₹27,628.16 (approximately)

Comparison summary –

So, you have seen how compound interest gives you a better return than simple interest. That's precisely why banks like IDFC FIRST Bank almost always use compound interest for their savings accounts—it helps you grow your money faster.

IDFC FIRST Bank offers interest rates on their savings accounts ranging from 3% to 7.00% per annum, depending on your account balance. But what really makes a difference is how they calculate and credit that interest.

3. Are there any charges or fees associated with the savings account?
 

IDFC FIRST Bank Savings Account allows you to enjoy zero-fee banking on ALL savings account services. These include –

1. Fund transfers (IMPS, RTGS, NEFT, etc.)
2. ATM transactions
3. Debit card transactions
4. Demand draft issuance, and more

For the full list of zero-fee banking services, click here.

4. What is the process for opening an IDFC FIRST Bank Savings Account?
 

Below are steps to open a savings account easily with IDFC FIRST Bank –

5. How can I access my account? (ATM, online, mobile app, etc.)
 

You can access your bank’s savings account easily through the mobile banking application of IDFC FIRST Bank and keep a check on your balance, cash flow status and more. Internet banking also makes the process easier by allowing you to perform online transactions.

6. How safe is my money in the IDFC FIRST Bank Savings Account?
 

IDFC FIRST Bank keeps your information and transactions safe using strong security methods. They use encryption to protect data, require a one-time password (OTP) for access, and have secure connections for online activity. The bank also watches for unusual activity and regularly checks its systems to ensure everything is secure.

7. Who is eligible to open an IDFC FIRST Bank Savings Account?
 

To open an IDFC FIRST Bank Savings Account, you should be above 18 years of age and belong to one of the following categories –

1. Indian citizens
2. Residents of India
3. Foreign nationals residing in India

8. Which documents are required to open the IDFC FIRST Bank Savings Account?
 

Here are the documents you need to open an IDFC FIRST Bank Savings Account –

1.      Documents required for digital bank account opening –

a. Aadhaar number

b. PAN number

2.      Documents required for physical bank account opening –

a. Passport-size photo

b. PAN Card

c. One of the following additional documents for residential proof -

i. Aadhaar Card

ii. Passport

iii. Voter ID

iv. Driving Licence

v. NREGA Job Card

vi. National Population Register letter

Final thoughts
 

IDFC FIRST Bank Savings Accounts offer a comprehensive blend of high interest rates, zero-fee services, and convenient digital banking. With various account types and 24x7 customer support, IDFC FIRST Bank ensures an easy banking experience, making it an ideal choice for those seeking to grow their savings and achieve financial goals efficiently.