IDFC FIRST Bank continues to offer some of the most attractive interest rates on savings accounts in 2025. While most banks offer lower returns, this bank stands out by providing up to 7% per annum, depending on your account balance. If you’re looking to grow your savings while enjoying liquidity, this guide will help you understand the IDFC Savings Account Interest Rate, how they work, and how to take advantage of them.
Latest IDFC Savings Account Interest Rate (As of May 2025)
Here is a breakdown of the current IDFC FIRST Bank savings account interest rates:
| Account Balance | Interest Rate (p.a.) |
|---|---|
| Up to ₹5 lakh | 3.00% |
| Above ₹5 lakh to ₹25 crore | 7.00% |
| Above ₹25 crore to ₹50 crore | 6.50% |
| Above ₹50 crore to ₹100 crore | 6.00% |
| Above ₹100 crore to ₹200 crore | 4.50% |
| Above ₹200 crore | 3.50% |
How Is the IDFC Savings Account Interest Rate Calculated?
Unlike traditional slab systems, IDFC FIRST Bank uses a progressive balance method. This means your total balance doesn’t earn a flat rate. Instead, each portion of your balance earns interest based on the slab it falls into.
For example:
- On the first ₹5 lakh, you earn 3.00%.
- On the next ₹20 lakh (i.e., from ₹5 lakh to ₹25 lakh), you earn 7.00%.
As a result, customers can earn significantly more interest, especially when maintaining higher balances. Moreover, interest is calculated daily and credited monthly, which further enhances your returns.
Why Choose IDFC FIRST Bank?
There are several reasons why this bank is a great option:
- Higher Returns: You can earn more compared to most other savings accounts.
- Monthly Interest Payout: Many banks credit interest quarterly, but IDFC FIRST Bank does it monthly.
- Digital Convenience: The bank provides robust mobile and online banking services.
- Zero Balance Option: Some accounts don’t require a minimum balance.
- Premium Benefits: Select accounts offer a Visa Signature Debit Card and other perks.
Altogether, these features make it an excellent choice for savers.
Comparing IDFC Savings Account Interest Rate With Other Banks (May 2025)
Here’s how it stacks up against competitors:
| Bank Name | Savings Interest Rate (p.a.) |
|---|---|
| IDFC FIRST Bank | Up to 7.00% |
| AU Small Finance Bank | Up to 7.25% |
| Kotak Mahindra Bank | Up to 4.00% |
| HDFC Bank | 3.00% – 3.50% |
| State Bank of India | 2.70% |
Clearly, IDFC FIRST Bank offers one of the most rewarding savings options for average and high-balance account holders.
Monthly Interest Earning Example
Let’s consider a customer who maintains an average monthly balance of ₹8 lakh:
- First ₹5 lakh @ 3.00% = ₹15,000/year
- Next ₹3 lakh @ 7.00% = ₹21,000/year
Total Interest (Yearly) = ₹36,000
Monthly Credit = ₹3,000
Since interest is credited every month, customers benefit from consistent passive income throughout the year.
How to Open an Account?
Opening an IDFC FIRST Bank savings account is simple and convenient. You can choose from the following options:
- Online: Visit the official website – idfcfirstbank.com
- Mobile App: Download the app from the Play Store or App Store
- Branch Visit: Walk into any nearby branch
Required Documents:
- Aadhaar Card
- PAN Card
- Passport-size photo
- Additional address proof (if needed)
Once your documents are verified, your account will be activated quickly.
Final Thoughts
To sum up, IDFC FIRST Bank provides one of the best savings account interest structures in India today. While traditional banks continue to offer lower rates, IDFC FIRST rewards savers generously—especially those maintaining balances above ₹5 lakh. With monthly interest payouts and a progressive calculation system, you not only earn more but also enjoy liquidity and flexibility.
If maximizing interest on your idle money is your goal, switching to or opening an IDFC FIRST Bank account can be a financially smart decision.
