IDFC First Bank Slashes Savings Account Interest Rates: Small Depositors Hit Hard

• IDFC First Bank has reduced interest rates on Domestic, NRE, and NRO savings accounts, effective January 9th.
• Interest rates for small and medium deposits have been cut by up to 200 basis points (2%).
• The highest interest rate is now 6.5% for balances between ₹10 lakh and ₹10 crore.
• Balances up to ₹1 lakh still earn 3% interest, while ₹1 lakh to ₹10 lakh now earn 5%.
• Savings account interest is taxable as 'Income from Other Sources'; deductions available under Section 80TTA/80TTB.

Why It Matters: IDFC First Bank significantly cut savings account interest, particularly impacting small and medium depositors.