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Savings Account Interest Rates 2025

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Overview

A high-interest Savings Account can make it easier to achieve financial goals, such as saving for retirement, buying a house, or going on a family vacation. This is because a high interest rate helps your Savings Account grow faster than an ordinary account.Read More

Open an IDFC FIRST Bank Savings Account to maximise the value from your money. Our Savings Account interest rates are among the highest in the industry, allowing you to earn better interest on your savings. Additionally, you benefit from zero-fee banking and monthly interest credits to further accelerate your savings’ growth. Explore a range of Savings Accounts customised for your varied needs and financial requirements.

Invest, save, and spend more with IDFC FIRST Bank's competitive Savings Account interest rates and minimal balance requirements. You can also access your savings on the go with our advanced mobile app and online banking services.

Moreover, since this interest rate is based on progressive balances in the applicable interest rate slab, you earn every day! So don't miss out.Read Less

 

IDFC FIRST Bank Savings Bank Account - Interest Rates 

 

On Balances
(in ₹)		 Rate of Interest (% p.a.)
effective from
16th October 2024
<= 5 lac 3.00%
> 5 lac <= 100 cr 7.25%
> 100 cr <= 200 cr 4.50%
> 200 cr 3.50%

 

Interest will be calculated on progressive balances in each Interest Rate Slab, as applicable

Please note that interest rates are subject to periodic change.

How to Calculate Savings Account Interest Rate

Here is the formula that banks generally follow for calculating the savings account interest rate:

Monthly interest = Daily Closing Balance x (Number of days) x Interest / (Days in the year)

Let’s understand this with an example. For instance, the closing balance in your bank account is ₹5 lakh, with an annual interest rate of 5%. Thus:

Monthly interest = 5,00,000 x 30 x (5/100) / 365 = ₹2,055

As per the latest RBI rules, savings account interest rates are calculated daily based on your closing account balance. However, the interest that you earn on your savings account is credited to your account on a quarterly or half-yearly basis, depending upon the type of savings account and the bank’s policies. However, in the interest of customers, the RBI has recommended that banks credit the interest amount to customers’ Savings Accounts on a quarterly basis.

IDFC FIRST Bank goes a step further to offer monthly interest credits i.e. the interest on your Savings Account is credited on a monthly basis.

TDS on Savings Account Interest

There is no TDS on the interest that you earn through your savings account. However, the interest earned on your savings account is considered as ‘Income from Other Sources’ and is taxable, based on your total earnings. Thus, it is important to declare the interest earned through your savings account while filing income tax returns. Individuals can claim a deduction of up to ₹10,000 under Section 80TTA for interest earned through Savings Account. For senior citizens, this deduction limit is extended up to ₹50,000, under Section 80TTB.


On the other hand, TDS does apply to interest earned through fixed deposits (FDs) or recurring deposits (RDs) once the interest earned exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).

Why IDFC FIRST Bank's Savings Account Stands Out

Boost Your Savings with Competitive Interest Rates

All the features of an IDFC FIRST Bank Savings Account make it easy to meet your savings goals. With a high interest rate up to 7.25% p.a., monthly interest credits, and zero charges on all Savings Account services, you save in every way when banking with us. What’s more, the revolutionary mobile banking app helps analyse and plan your finances with tools like expense tracking, cashflow analysis, and more.

Enjoy Exclusive Discounts and Cashbacks

Enjoy several discounts and cashback offers on your savings account debit card. From instant discounts and deals on various restaurants and brands, save big each time you spend. IDFC FIRST Bank also has one of the most rewarding loyalty program in place for you. As a FIRST Rewards member, earn points on everyday purchases and redeem them with ease on our portal through various exciting options.

Seamless Digital Banking at Your Fingertips

Not only can you open a bank account online with IDFC FIRST Bank, but also bank with ease 24x7 using our intuitive Internet  banking platform and mobile banking app. Seamlessly manage your savings account, initiate bank transfers, check balances, and more with our cutting-edge digital solutions. You can track spends, earn rewards, and invest in mutual funds all in just a few clicks. So, with both savings and investing, your savings bank account has got you covered. You can also make use of the cash flow analysis feature that can help you budget and plan financially in a more effective manner.

24/7 Customer Support Whenever You Need It

Enjoy 24x7 customer support for all your savings account banking needs and have your queries addressed with efficiency and care. Whether you want to get your queries solved on a phone call or on WhatsApp, receive quick assistance and have a smooth banking experience.

IDFC FIRST Bank Savings Account – A Truly Class Apart Experience

IDFC FIRST Bank has been recognized as a 'Class Apart' by a pathbreaking study conducted by Moneylife Foundation and IIT Bombay for fairness in our Savings Account service charges. This pioneering study titled 'Benchmarking Reasonableness of Service Charges by Banks in India' ranked IDFC FIRST Bank in the 'A category' for its unmatched Zero Fee Banking promise.

Exclusive Features of IDFC FIRST Bank Savings Accounts

IDFC FIRST Bank offers savings account with several features designed to provide a seamless banking experience. Enjoy Zero Fee Banking on all common savings account services, ensuring that your bank account remains cost-effective and easily accessible.
Zero-fee banking
Zero fee banking

Enjoy Zero Charges on All Savings Account Services. These zero-fee services include bank transfers like IMPS, NEFT, and RTGS, SMS Alerts, issuance of a debit card, demand draft, and interest certificate; ATM transactions, and more. Access all essential services with ease without hidden costs.

Know More
Monthly interest credits
Monthly interest credits

Experience the peace of mind that a predictable source of additional income provides with monthly interest credits on your savings account balance. The interest is calculated daily, based on your end-of-day balance, and is credited to your account monthly. Enjoy the rewards of your savings more often.

Competitive interest rates
Competitive interest rates

Enjoy competitive interest rates and earn interest on your savings account balance of up to 7.25% per annum. Such a high interest rate ensures that your money works hard for you. Watch your savings grow rapidly and meet various financial goals with ease.

Free and unlimited ATM withdrawals
Free and unlimited ATM withdrawals

Transact with ease and access your funds anytime with free and unlimited ATM withdrawals. This ensures that you can maintain complete liquidity and control over your savings account balance.

IDFC FIRST Bank – A Class Apart
IDFC FIRST Bank – A Class Apart

IDFC FIRST Bank has been recognized as a 'Class Apart' by the pathbreaking study conducted by Moneylife Foundation and IIT Bombay for fairness in services charges on our Savings Account. This pioneering study titled 'Benchmarking Reasonableness of Service Charges by Banks in India' has earned IDFC FIRST Bank an 'A category' ranking for our unmatched ZERO FEE Banking promise

Open Savings Account

Savings Account Interest Calculator

Choose account balance

10k 100cr

Choose your existing bank interest rate

2.5 % 3.5 %

Simulation Results(for a period of 1 year):

* Interest you earn with IDFC FIRST Bank –

** Interest you earn with your Bank –

Additional Interest you earn with us –

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* Interest calculated on progressive balances in each interest rate slab, as applicable
** Interest calculated on flat rate basis

  • Pitruprasad Dash

    “Recently I opened a savings account with IDFC FIRST Bank. Firstly, in terms of the process to open savings account, it is truly hassle-free. Thanks for being ahead in terms of customer satisfaction and banking services, making it easy for new customers like me. I wish IDFC FIRST Bank a great future and looking forward to a long term association.”

  • Sougata Das

    “I recently opened a Savings Account with IDFC FIRST Bank, and I must tell you that I'm really happy with the features and benefits offered by the bank. The netbanking services are quite advance which makes the process easy. Also, the IDFC FIRST Bank employees are cordial and helpful, making the overall experience a pleasant one.”

Savings Account Interest Rate Blogs

WHAT IS MONTHLY COMPOUND INTEREST

FEATURED

What is Monthly Compound Interest?

Compound interest can grow your savings over time, and if done monthly, the returns are higher. Learn how to calculate compound interest and earn better returns on your Savings Account. Read on to know more.

IDFC FIRST Bank14 Aug 2024 • 3 mins read

Read Full Story

View More


Disclaimer: With IDFC FIRST Bank Savings Accounts, enjoy Zero Charges on all Savings Account services. These services are being offered free in good faith, and in case of misuse of services, the Bank reserves the right to levy charges. Forex mark-up fee will be applicable on International ATM/POS/Debit card transactions. T&Cs are subject to periodic changes. All rights reserved.

Savings Account Interest Rate FAQs

What is the savings account interest rate?

The savings account interest rate is the money banks pay on the idle funds in your savings account. The interest, paid out quarterly, is calculated on the daily closing balance, and the value varies depending on your bank. IDFC FIRST Bank account holders receive higher savings account interest rates, with interest credited monthly for enhanced savings.

How is the Savings Account Interest Rates Calculated?

Interest will be calculated on progressive balances in each Interest Rate Slab, as applicable

Interest will be calculated on progressive balances in each Interest Rate Slab, as applicable. Please note that interest rates are subject to periodic change. Please click here for the interest rates.

What factors affect the savings account interest rate?

The savings account interest rate is influenced by a few factors such as:

  • Prevailing repo rates set by the Reserve Bank of India (RBI)
  • Economic conditions such as inflation rates and overall market performance
  • The bank's internal policies and competitive positioning in the market 

What is the frequency of interest payout?

IDFC FIRST Bank provides monthly interest payout on Savings Account, helping you earn regular income.

When is interest credited to a savings account?

IDFC FIRST Bank credits interest to savings accounts monthly based on the account's end-of-day balance. As a result, you can benefit from your savings more frequently while ensuring your funds continue to grow.

How does the monthly interest credit for the savings account work?

IDFC FIRST Bank credits interest monthly to your savings account, allowing you to earn a regular income. The interest earned is credited to your savings account every month. So, the following month, you earn interest on your balances, including interest on your previous month’s interest, and so on.

How often is the interest rate on a savings account calculated?

As per Reserve Bank of India guidelines, the interest in a savings account is calculated on the daily closing balance. Accordingly, interest is calculated daily and credited monthly or quarterly by the bank.

 

Is savings account interest taxable?

Savings account interest up to ₹10,000 or ₹50,000 earned during a financial year is eligible for deduction under 80TTA & 80TTB (In case of senior citizen only) of Income Tax Act 1961 respectively. However, interest earned over ₹10,000/₹50,000 per financial year is subject to taxation according to the applicable tax slab and rate.”

How do I find the best savings account interest rate?

With a little research, you can find the best savings account interest rates. You can find out what interest rate your preferred bank offers by visiting its official website. IDFC FIRST Bank offers one of the highest savings account interest rates as well as monthly interest credit.

Are there any specific interest rate benefits for senior citizens?

Banks often offer higher interest rates (0.25% to 0.75%) on Fixed Deposits for senior citizens, though additional benefits on Savings Accounts may not be available universally. Senior citizens can also claim a tax deduction of up to ₹50,000 under Section 80TTB, enhancing their financial benefits.

How can I ensure I maximize my savings account interest earnings?

To ensure that you maximise your savings account interest earnings, choose a bank with competitive interest rates. Additionally, ensure that the account credits the interest more frequently and offers superior features, such as an auto-sweep facility for surplus funds.

For example, IDFC FIRST Bank offers among the highest Savings Account interest rates in India which is credited monthly to your account. This helps you grow your savings faster through frequent compounding.

Remember, the higher the amount and longer you keep your money in your savings account, the more will be the interest income you earn. 

Will I be notified if my savings account interest rate changes?

Banks update the latest interest rates on their official websites. It is recommended to regularly check your bank's website for any updates regarding interest rates.

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