IDFC First Bank has raised the interest rates on its savings accounts, which will go into effect on April 1, 2022. The interest on savings accounts will be calculated in a progressive manner.
“As per Reserve Bank of India regulations, Savings Bank account interest will be calculated on daily end-of-day balances at the rate of interest as indicated by IDFC FIRST Bank from time to time,” according to the IDFC First Bank website. The payment of interest on Savings Bank accounts will be made on a monthly basis beginning July 1, 2021. Interest will be calculated on progressing balances in each applicable Interest Rate Slab.”
How does interest become calculated?
According to the bank’s website, interest is computed on a 365-day basis for fixed deposits that fall in a non-leap (financial) year and a 366-day basis for fixed deposits that fall in a leap (financial) year.
What is the procedure for establishing a progressive basis?
According to IDFC First Bank, here is how the interest rate will be computed.
1. If you have a balance in your account of Rs. 25,000, you would be charged 4% interest on the total amount.
2. If your account balance is Rs. 5 lacs, you would be charged 4% interest on the first lac and 4.5 percent on Rs. 4 lacs.
3. If your account balance is Rs. 1.10 crores, you would be charged 4% interest on Rs. 1 lac, 4.5 percent on Rs. 9 lacs, and 5% interest on Rs. 1 crore.
4. If your account balance is Rs. 5.3 crores, you would be charged 4% interest on Rs. 1 lac, 4.5 % interest on Rs. 9 lacs, and 5% interest on Rs. 5.2 crore.