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Unlike many banks that credit savings account interest quarterly, IDFC FIRST Bank calculates interest on your daily closing balance and credits it to your account every month. You can earn up to 6.50% p.a. on your savings, while monthly interest credits help your money benefit from compounding sooner. Besides this, the account offers several other features and benefits, which are discussed further.
IDFC FIRST Bank Savings Account Interest Rate
| Savings Account Balance | Interest Rate (% p.a.) |
| Up to Rs 3 lakh | 2.50% |
| Above Rs 3 lakhs to up to Rs 25 crores | 6.50% |
| Above Rs \25 crores | 5.00% |
Note- Interest will be calculated on progressive balances in each Interest Rate Slab, as applicable.
The Interest rates are applicable from 21 April 2026.
Feature & Benefits of Monthly Interest Credit
Apart from monthly interest credits, IDFC FIRST Bank offer several other benefits on its savings account, Which are as followed:
- Interest Rate- Up to 6.5% p.a. interest on your savings account. (Progressive)
- Monthly Interest Payouts– Maximise your savings with monthly interest credits instead of quarterly.
- Digital Account Opening- Open your IDFC FIRST Bank Savings Account online with a minimal paperwork and digital process.
- Easy Access- Get free and unlimited ATM withdrawals with high ATM and POS transactions limits.
Monthly Interest Credits: Give Your Savings Power of Compounding
When a bank calculates interest on your daily closing balance and credits it every month, the interest earned is added to your account at the end of each month. From the following month onwards, you earn interest not only on your original deposit but also on the interest already credited. This is the power of compounding.
Example:
Suppose you deposit ₹1,00,000 in a savings account offering 6% p.a. interest.
- Month 1: Interest earned = ₹500 (₹1,00,000 × 6% ÷ 12)
New balance = ₹1,00,500 - Month 2: Interest is now calculated on ₹1,00,500, not ₹1,00,000.
Interest earned = ₹502.50 (approx.)
So your new balance would be approx. ₹1,01,002.50
This process continues every month, with each month’s interest becoming part of your balance. As a result, your savings keep growing and you earn interest on both your principal and the interest already credited, allowing your money to compound over time.
Who should open IDFC FIRST Bank Savings Account
- Individuals looking to earn up to 6.50% p.a. on their savings.
- Those who want monthly interest credits to benefit from faster compounding.
- Salaried professionals seek to manage expenses and savings efficiently and want to create an emergency fund, as it has no locking period means you can access your fund whenever you need.
- Individuals who prefer digital banking with online account opening and mobile banking.
- Customers looking for insurance benefits, debit card privileges and lifestyle offers.
- People who maintain the required Average Monthly Balance (AMB) to unlock premium account benefits.
Who Can Apply For IDFC FIRST Bank Savings Account
Following individuals who meets the bank’s eligibility criteria and KYC requirements can apply for IDFC FIRST Bank Savings Account:
- Age- Above 18 years
- Income Criteria- Not specific for standard savings account
- Employment Type- Salaried, Self-employed, Professional etc.
- Residency-
- Resident Individuals (Sole or Joint Accounts)
- Foreign Nationals Residing in India with valid documentation
- Hindu Undivided Families (HUF)
Documents Required to Open IDFC FIRST Bank Savings Account
The list of the documents that are required to open saving account in IDFC FIRST Bank depending on online or offline are as followed:
- For Online – Aadhaar Number, PAN, Aadhaar-linked mobile number
- For Offline- The following documents:
- Passport size photo
- PAN (mandatory) or Form 60
- Aadhaar, Voter ID, Passport, Driving License, NPR (National Population Register) Letter or NREGA Job Card (Any one of them).
Monthly Interest Credits vs Quarterly Interest Credit- A Quick Comparison
| Features | Monthly Interest Credit | Quarterly Interest Credit |
| Interest Credit Frequency | Credited every month | Credited once every three months |
| Compounding Benefits | Higher, as interest starts earning interest sooner | Lower, as interest is credited less frequently |
| Cash Flow | Provides regular monthly Interest income | Interest is received only once every quarter |
| Overall Return | Slightly higher due to more frequent compounding | Slightly lower compared to monthly credit |
| Preferred By | Those who prefer regular income | Those who don’t need frequent interest payouts |
How to Open IDFC FIRST Bank Savings Account
Online Process
- Log in to Internet Banking or Mobile Banking App of IDFC FIRST Bank
- Click on ‘Savings Account’
- Fill the required details and verify with OTP
- Select the preferred Saving Account Variants (₹10k or ₹25k)
- Add nominee details (optional)
- Accept terms & conditions and proceed further to open account
Offline Process
- Visit your nearest bank branch
- Submit the account opening form
- Provide PAN and valid KYC documents
- Complete verification
- Account is activated after successful verification and initial funding
FAQs
What is the Monthly Interest Credit facility of the IDFC FIRST Bank Savings Account?
According to this facility IDFC FIRST Bank credit interest on your savings on a monthly basis, helps to maximize your savings.
Which bank is giving monthly interest on a savings account?
Currently, IDFC FIRST Bank is offering monthly interest credit on savings accounts, and it is calculated on the closing balance of the day.
What is a monthly interest savings account?
In a monthly interest savings account, the interest on your account balance is calculated and credited monthly (usually on the daily closing balance). Interest is paid monthly, so your savings begins earning interest on interest sooner. That’s the power of compounding.
Can I open an IDFC FIRST Bank savings account online?
Yes, you can open a savings account online with minimal documentation.
What is the interest rate of the IDFC FIRST Bank Savings Account?
Currently, IDFC FIRST Bank is offering up to 6.50% p.a. Interest rate on its savings account along with monthly interest credit benefits.
Do I need to choose between monthly interest credit and quarterly interest credit on my savings account?
No, IDFC FIRST Bank offers monthly interest credit by default to its all savings account variants.
How is monthly interest calculated on IDFC FIRST Bank savings accounts?
The monthly interest on the IDFC FIRST Bank Savings Account is calculated on the daily closing balance during the month. The interest is charged on the closing balance of each day at the relevant annual rate. The interest earned for the month is then added together and credited to your savings account at the end of the month.