Yes Bank & IDFC First Bank Revises Savings Account Interest Rates; Get Up To 7%

Following the fifth consecutive decision to hold the repo rate at 6.5% by the Reserve Bank of India's Monetary Policy Committee (MPC) on December 8, banks are racing to raise interest rates on savings accounts and term deposits. As of January 1, 2024, Yes Bank and IDFC First Bank have revised their interest rates on savings bank deposits and are giving returns of up to 7%. This information is important for customers of savings accounts who are searching for higher interest rates.

Yes Bank Savings Account Interest Rates

The bank offers an interest rate of 3.00% on daily balances in savings accounts up to Rs. 1 lakh, while Yes Bank offers an interest rate of 4.00% on daily balances in savings accounts above Rs. 1 lac and less than Rs. 5 lacs. The interest rate that Yes Bank is giving is 5.00% on daily balances in savings accounts that are above Rs. 5 lakhs and below Rs. 10 lacs, and 7% on balances that are above Rs. 10 lakhs and below Rs. 100 crores.

"Interest will be calculated on incremental balances in each Interest Rate Slab at applicable rates as above w.e.f 01st January'24," mentioned Yes Bank on its website.

Yes Bank has said on its website that if the total balance is INR 10 Crores, then the interest calculated will be 3% for balances of Rs 1 to Rs 1,00,000, 4.00% for incremental balances from Rs 1,00,001 up to Rs 4,99,999, 5.00% for incremental balances from Rs 5,00,000 up to Rs 9,99,999 and 7.00% for incremental balances from Rs 10,00,000 up to Rs 10 Crores.

IDFC First Bank Savings Account Interest Rates

On savings account balances of up to Rs 1 lakh, the bank is offering an interest rate of 3.00% and on savings account balances of Rs 1 lakh to Rs 5 lakh, IDFC First Bank will pay an interest rate of 4.00%. IDFC First Bank is now promising an interest rate of 7.00% on savings account balances of more than Rs 5 lakh to Rs 50 Cr.

Interest payable on savings accounts will be 5% on the balance slab of Rs 50 Cr to Rs 100 Cr and 4.50% on a balance slab of Rs 100 Cr to Rs 200 Cr. On a savings account balance of more than Rs 200 Cr, IDFC First Bank is now offering an interest rate of 3.50% effective from 1st January 2024.

Interest payable on the savings accounts will be calculated on a progressive basis according to IDFC First Bank based on the below-pointed examples.

1. In case your account balance with us is Rs. 25,000, the interest payable to you will be 3% on the entire Rs. 25,000.
2. In case your account balance with us is Rs. 4 lacs, the interest payable to you will be 3% on Rs. 1 lac, 4% on Rs. 3 lacs.
3. In case your account balance with us is Rs. 50 lacs, the interest payable to you will be 3% on 1 lakh, 4% on Rs. 4 lacs and 7% on Rs. 45 lacs.
4. In case your account balance with us is Rs. 4.3 crores, the interest payable to you will be 3% on 1 lakh, 4% on Rs. 4 lacs and 7% on Rs. 4.25 crores.