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1. Go to More
2. Select Customer Service Dashboard
3. Select ‘Savings/Current Accounts’
4. Select ‘Upload Signature’ to upload your signature.
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Enjoy Zero Charges on All Commonly Used Savings Account Services
Open Account NowEnjoy Zero Mark-up on Forex Transactions on your FIRST WOW! Credit Card
Apply NowTraditionally, savings bank accounts in India are known to offer interest on your savings deposit on a quarterly basis. We at IDFC FIRST Bank are one of the few banks who offer monthly interest credit on your savings account , where the interest pay-outs on your savings take place on a monthly basis. In this, the interest is calculated on the daily closing balance and credited to your account balance each month.
With a monthly interest credit in your savings account, the interest earned is compounded more frequently, with every passing month. Compounded interest means you earn interest on interest, along with the principal amount, generating better returns. This compounding effect is what allows your account balance to grow rapidly over time.
What is a monthly interest pay-out on savings account?
Monthly interest on a savings account is the regular disbursement of interest earned on the funds deposited in the account. When you maintain a balance in your savings account, the bank pays you interest on that balance monthly. This interest is calculated based on the amount of money you have in the account and the prevailing interest rate. The monthly interest payout provides you with a steady stream of earnings on your savings, which can help your money grow over time. This arrangement encourages individuals to save money while also ensuring that their savings generate returns periodically, contributing to their financial well-being.
How is monthly interest on savings account calculated?
Calculating monthly interest on a savings account involves multiplying the average daily balance in the account by the monthly interest rate. The average daily balance is determined by adding up the closing balance of the account for each day of the month and dividing it by the total number of days in the month. The monthly interest rate is usually an annual interest rate divided by twelve to get the monthly rate.
Once the average daily balance and the monthly interest rate are determined, multiplying them yields the amount of interest earned for that month. This calculation method ensures that the interest earned reflects the account's balance throughout the month, providing an accurate representation of the interest earned on the savings.
Formula for calculating monthly interest on a savings account
The formula for calculating monthly interest on a savings account is quite straightforward:
Monthly interest = (Average daily balance) x (Interest rate per annum/12)
To find the average daily balance, sum up the closing balance of the account for each day of the month and divide it by the total number of days in the month. The monthly interest rate is typically the annual interest rate divided by twelve to convert it into a monthly rate. Multiplying the average daily balance by the monthly interest rate yields the amount of interest earned for that month
To use the savings account interest rate calculator, follow the steps as below:
You can further adjust the inputs to compare potential earnings based on different scenarios. Finally, review the results to make informed decisions about your savings strategy.
Monthly Interest Credit on Savings
Free & unlimited ATM withdrawals
Simulation Results(for a period of 1 year):
* Interest you earn with IDFC FIRST Bank
** Interest you earn with your Bank
Additional Interest you earn with us
Simulation Results
For a period of 1 year
Addition Interest you earn with us
Interest Rate Calculator:
Choose account balance
10K 50L
Choose your existing bank interest rate
2.5% 3.5%
* Interest calculated on progressive balances in each interest rate slab, as applicable
** Interest calculated on flat rate basis
Key Features Beyond Monthly Interest Credits
In addition to monthly interest credits, IDFC FIRST Bank Savings Accounts offer a plethora of features, such as:
If you want to grow your savings and earn regular interest income, opening an IDFC FIRST Bank Savings Account with monthly interest credits is a smart choice. Here are some of the benefits of opening an account with us:
Special Features | Average Monthly Balance of ₹10,000 | Average Monthly Balance of ₹25,000 |
---|---|---|
ATM Withdrawal | Free and unlimited transactions at any bank ATM* | Free and unlimited transactions at any bank ATM* |
Daily ATM Withdrawal Limit | ₹1 lakh | ₹2 lakhs |
Daily Purchase Limit (POS) | ₹4 lakhs | ₹6 lakhs |
Personal Accident Insurance | ₹5 lakhs | ₹35 lakhs |
Air Accident Insurance | ₹30 lakhs | ₹1 crore |
Domestic Airport Lounge Access | NIL | Complimentary, once per quarter |
Debit Card | VISA Classic | VISA Platinum |
Lost Card Liability | ₹4 lakhs | ₹6 lakhs |
Purchase Protection | ₹50,000 | ₹1 lakh |
IMPS | FREE | FREE |
Cheque Book | FREE* | FREE* |
T&C Apply
Effective from 15/07/2024:
Please note that the Bank has reduced interest rates to 3% on savings accounts for balances up to Rs. 5 lac. The interest rate paid earlier was 3.5% for balances between Rs. 1 lac up to Rs. 3 lac and 4% for balances between Rs. 3 lac up to Rs. 5 lac.
Disclaimer: With IDFC FIRST Bank Savings Accounts, enjoy Zero Charges on all Savings Account services. These services are being offered free in good faith, and in case of misuse of services, the Bank reserves the right to levy charges. Forex mark-up fee will be applicable on International ATM/POS/Debit card transactions. T&Cs are subject to periodic changes. All rights reserved.
When customers receive interest on their savings on a monthly basis, the Savings Account is known to offer monthly interest credit. In this type of an account, the interest on the available balance is credited to the savings account on the 1st of every month.
For the convenience of our customers, the Bank will credit interest to customers’ savings accounts on a monthly basis. IDFC FIRST Bank is among the few in the industry to offer monthly interest credit on savings accounts.
The Bank offers its monthly credit facility for all its savings account customers.
No. All savings account customers will be offered monthly interest credit by default.
Closing your savings account before the end of the month typically means forfeiting the monthly interest credit. Interest is usually credited at the end of each month for accounts that remain active throughout the entire period. Closing the account prematurely usually disqualifies you from receiving that month's interest. It's advisable to check with your bank for specific policies regarding interest crediting upon account closure.
Failure to maintain the average balance in your active savings account may result in a penalty for non-maintenance of average monthly balance charges. However, as per the RBI’s guidelines, the bank doesn’t impose this penalty on a dormant savings account. Regularly monitoring your account balance and understanding your bank's policies can help you avoid unnecessary fees.
The bank offers an annual interest rate ranging between 3% to 7.25% depending on the average balance maintained on a monthly basis. The exact rate depends on the average balance maintained. To know the interest rate, refer to the bank's documentation, or contact customer service.