This Private Bank Has Raised Interest On Savings Account With Balances Less Than Rs 1 Lakh To 7%

With effect from 1 January 2021, savings account holders of IDFC First Bank, with balances less than Rs 1 lakh, will earn interest of 7% on their deposits.

The interest rate has been raised from 6% earlier, a surprising and rewarding move for bank account holders at a time when major banks in the country are offering up to 4% interest.

IDFC First Bank savings account balances above Rs 1 lakh will continue to earn 7%, as before.

In comparison, the State Bank of India (SBI), the largest bank in the country, currently offers 2.9% interest on savings accounts with balances less than Rs 1 lakh.

Is IDFC First Bank safe?

IDFC First Bank was formerly known as IDFC Bank and started as a wholly-owned subsidiary of IDFC in 2014. However, in 2018, IDFC Bank and Erstwhile Capital First announced a merger, forming a new entity called IDFC First Bank, on 18 December 2018.

It has over 260 branches and is a listed scheduled commercial bank. Deposits and savings account balances of all scheduled commercial banks aggregating up to Rs 5 lakh per customer are covered under the government's deposit guarantee insurance scheme.

The interest on savings accounts is not locked in and can be changed by the bank at will. New banks often offer higher rates to attract retail customers and expand reach.

On 11 March 2020, the bank announced that it has signed Bollywood actor Amitabh Bachchan, as its first brand ambassador.

Disclaimer

The article is purely informational and is not a solicitation to buy, sell in securities mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.