IDFC First Bank cuts charge on financial savings account: Options for retail depositors

IDFC First Bank was the one financial institution that used to supply 6% rates of interest to small depositors -– these sustaining a steadiness of under ₹1 lakh. The financial institution would provided it to all depositors sustaining a steadiness of as much as ₹1 crore. But from 1 May, the financial institution has lowered its rates of interest on the financial savings account.

Taking a cue from its peer, the financial institution now has totally different tiers. It will supply 4% for individuals who keep balances under ₹1 lakh. Those sustaining a steadiness between ₹1 lakh and fewer than ₹10 lakh, the rate of interest shall be 4.5%. The highest rate of interest of 5% is given to those that keep a steadiness between ₹10 lakh and under ₹2 crore.

So, which banks now supply increased rates of interest on a financial savings account?

Large non-public sector banks, like ICICI Bank, supply a 3-3.5% rate of interest. Public sector banks, too, supply comparable charges. Some, just like the State Bank of India, supply even decrease charges of two.7%.

Some mid-sized non-public banks and small finance banks supply higher charges of financial savings account.

FOR BALANCES UP TO RS 1 LAKH

Fincare Small Finance Bank: 5%

RBL Bank: 4.75%

ESAF Small Finance Bank: 4%

IDFC First Bank: 4%

Suryoday Small Finance Bank: 4%

Ujjivan Small Finance Bank: 4%

AU Small Finance Bank: 3.5%

Equitas Small Finance Bank: 3.5%

Jana Small Finance Bank: 3.5%

Bandhan Bank: 3%

FOR BALANCES ABOVE RS 1 LAKH

Equitas Small Finance Bank: 7%

(Above ₹1 lakh and as much as ₹2 crore)

Ujjivan Small Finance Bank: 7%

(Above ₹1 lakh and as much as ₹25 lakh)

Fincare Small Finance Bank: 6.25%

(Above ₹1 lakh and as much as ₹5 lakh)

Suryoday Small Finance Bank: 6.25%

(Above ₹1 Lakh and as much as ₹10 lakh)

Bandhan Bank: 6%

(Above ₹1 lakh to ₹10 crore)

Jana Small Finance Bank: 6%

(Above ₹1 lakh and as much as ₹10 lakh)

RBL Bank: 6%

(Above ₹1 lakh and as much as ₹10 lakh)

ESAF Small Finance Bank: 5.5%

(Above ₹1 lakh and as much as ₹10 lakh)

AU Small Finance Bank: 5%

( ₹1 lakh to lower than ₹5 lakh)

IDFC First Bank: 4.5%

( ₹1 lakh and under ₹10 lakh)

Do take into account that most banks have a tier system for providing rate of interest. Take IDFC Bank for instance. If your account steadiness is ₹25,000, the curiosity payable shall be 4% on the complete ₹25,000.

If the account steadiness is ₹5 lakh, the financial institution will calculate curiosity payable in two elements. It can pay an curiosity of 4% on ₹1 lakh. The remaining quantity ( ₹4 lakh) will earn an curiosity of 4.5%.

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