IDFC First Bank slashes savings account rates by up to 200 bps on select slabs

Group 1 - IDFC First Bank has reduced interest rates for savings accounts by up to 200 basis points, effective January 9 [1] - The interest rate for balances between ₹1 lakh and ₹10 lakh has been cut from 7% to 5%, representing a significant reduction for this popular slab [2] - The interest rate for balances below ₹1 lakh remains at 3%, while the slab for ₹10 lakh to ₹10 crore will now earn 6.50%, down from 6.75% [3] Group 2 - The interest rate for balances between ₹10 crore and ₹25 crore remains unchanged at 6%, as well as for amounts up to ₹100 crore at 5%, and 4% for amounts over ₹100 crore [4] - The interest rate cut comes amid challenges for banks in attracting deposits despite strong credit growth, following a 25 basis point cut in the policy repo rate by the Reserve Bank of India [4] - The bank will continue to calculate interest on a progressive basis, with different portions of the balance earning interest at varying slab rates, credited monthly [6]