As of January 9, 2026, IDFC First Bank has updated its savings account interest rates. The bank maintains its signature progressive interest rate structure, where different portions of your total balance earn interest at different tier rates, and interest is credited monthly—a key differentiator from the standard quarterly payouts at most Indian banks.

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1. Revised Interest Rate Slabs (Effective Jan 9, 2026)

The highest available rate is now 6.5%, applicable on the portion of your balance between ₹10 lakh and ₹10 crore.

2. How Progressive Calculation Works

The interest is not applied as a flat rate to the whole amount. Instead, it is broken down into segments.

Example: If you have ₹1 Crore in your account:

• First ₹1 Lakh: Earns 3%

• Next ₹9 Lakhs: Earns 5%

• Remaining ₹90 Lakhs: Earns 6.5%

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3. Key Features: Monthly Payouts & Compounding

Unlike most banks that pay interest every 90 days, IDFC First Bank credits interest to your account every 30 days.

• Faster Compounding: Because interest is added to your principal monthly, your money begins earning “interest on interest” more frequently.

• Daily Calculation: Interest is calculated based on your end-of-day balance.

• Non-Leap vs. Leap Year: The bank uses a 365-day base for calculation in 2025 and a 366-day base for 2026 (a leap year).

4. Savings Account vs. Liquid Funds (2026 Outlook)

The report suggests that while IDFC’s 6.5% is competitive, users with large surplus funds may look at Liquid Mutual Funds.

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The post IDFC First Bank Savings Interest Rates 2026: Up to 6.5% Jan 9 first appeared on Rightsofemployees.com.