MUMBAI: From 1 January, IDFC First Bank has raised the interest rate on savings account balances up to ₹1 lakh to 7%. The interest rate was 6% earlier. The rate correlates favorably with the 3-4% on offer in superior private sector banks.
IDFC First Bank is a registered commercial bank with a market cap of around ₹22,500 crores and a chain of around 260 branches. It got a banking license in 2015 and registered on the stock exchanges that year. Savings account balances above ₹1 lakh will proceed to earn 7%, as before.
Deposits and savings account balances aggregating up to ₹5 lakh per consumer are covered under the government’s deposit guarantee insurance scheme. The interest on savings accounts is not locked in and can be adjusted by the bank at will.