Bank interest rates are at record lows in India. Following suit, IDFC First Bank has decided to slash its interest rates on savings accounts from 6% to 4-5%. The interest rates have been slashed for bank accounts with a balance of Rs 1 lakh to Rs 2 crore.
On the official website, IDFC First Bank said that the new rates will be effective from 1 May. For bank accounts with a balance between Rs 2 crore to Rs 10 crore, IDFC First Bank is offering an interest rate of 4%.
Bank customers with balances up to Rs 2 crore will get a 5% interest rate while it is offering a 4.5% rate for bank balance between Rs 1-10 lakh. Notably, IDFC is among one of the private banks in the country which are offering higher interest rates as compared to public banks.
Besides IDFC, RBL and Bandhan Bank are offering one of the highest interest rates on saving account. However, the bank has significantly reduced its interest rate drastically in 2021. In February 2021, IDFC had slashed the interest rate from 7% to 6%.
Meanwhile, small finance banks are offering impressive interest rates in India. For instance, Utkarsh Small Finance Bank is offering 5-10% interest rates to its customers. You can avail a 6.5% interest rate if you have Digital Savings Account in RBL Bank.
Currently, Bandhan Bank is proving 7.15% to its customers with a daily balance of over Rs 50 crore. In comparison, most of the public sector banks are offering just 3.5% interest rates to their customers.