IDFC First Bank to Revise Savings Rates: Small Savers Lose, Mid-Range Gain

• IDFC First Bank announced revised savings account interest rates, set to be effective from December 17, 2025.
• Under the new structure, balances up to ₹5 lakh will earn 3%, a reduction for those previously getting 5% on ₹1-5 lakh.
• A significant benefit is introduced for mid-range balances (₹5 lakh to ₹5 crore), which will now earn 7% interest, up from the previous 5%.
• Interest rates for higher slabs (above ₹10 crore) largely remain unchanged, minimizing impact on large corporations and HNI customers.
• The bank's strategy aims to attract customers with mid-sized deposits by offering a highly competitive 7% rate for the ₹5 lakh to ₹5 crore bracket.

Why It Matters: IDFC First Bank's upcoming rate changes favor mid-range savers, disadvantaging small balance holders.