Shivalik Small Finance Bank and IDFC First Bank, two of the highly reputed banks in the country have made recent changes to the savings account interest rates effective from May 1, 2025. This change comes as good news for several account holders and investors.
Let’s see in detail what the two banks have announced and what the benefit is to you.
Shivalik Small Finance Bank’s New Interest Rates
Shivalik Small Finance Bank has recently changed how much it offers in interest for money kept in savings accounts. With the new changes, now customers can earn interest rates ranging from 2.50% to 8.20% per annum depending on the amount they hold in their account.
Effective from May 1, 2025
These interest rates have been applicable since May 1st, 2025. Hence, if you have already opened an account with the bank or if you plan to open one, these are the rates that will apply now.
Interest Based on Account Balance
Let us find out how the rates change based on the quantum of the amount maintained in savings accounts:
Up to ₹1 lakh: You will receive an interest of 2.50% per annum.
₹1 lakh to ₹5 lakhs: You will be paid interest of 3.25% by the bank.
From ₹5 lakhs to ₹10 lakhs: You enjoy 3.50% interest.
From ₹10 lakhs to ₹25 lakhs: Interest rises to 4.00%.
If you have a balance ranging from ₹25 lakhs to ₹50 lakhs, you’ll be getting an interest rate of 6.00%.
Keep Higher Balances, Keep Interest Higher
7.00% Interest: ₹5 million to ₹50 million.
7.25% Interest: ₹50 Million to ₹70 Million.
7.50% Interest: ₹70 million to ₹1 crore.
For deposits between ₹10 crores and ₹20 crores, the interest you’ll earn is 7.95%.
For amounts above ₹20 crores, the highest interest rate offered is 8.20%.
This is amongst the best rates of accrual presently in India on savings accounts.
New Savings Rates of IDFC First Bank
IDFC First Bank has announced that it has revised the rates of interest for the savings accounts. The fresh rates are now available starting from 3.00% to 7.25% depending on the amount in your saving account.
Interest Slabs Effective From May 1, 2025
Here is the different interest cut as per the above new rates for IDFC First Bank:
Up to ₹5 Lakhs – You’ll earn 3.00%.
At uptight ₹5 lakhs and above ₹10 lakhs, you shall earn 5.00% interest.
If your deposit ranges from ₹10 crores to ₹20 crores, you’ll receive an interest rate of 7.95%.
If you’re depositing anywhere from ₹25 crores to ₹50 crores, the interest rate dips a bit and stands at 6.50%.
From ₹50 to ₹100 crores, the bank pays out at 6.00%.
What This Means for You
Great news, indeed, if you keep a considerable amount of cash saved in a savings account. Both of these institutions provide much higher interest rates compared with the average traditional bank.
Good Rate for Both Short and Long Term
Be it saving money for the short term, say, a holiday or wedding, or for a long-term goal, these high-interest savings accounts can grow your money a lot faster and without risk.
Push for Better Returns by Changing Banks
If you are earning little interest from your current bank, it may be worth going the whole hog and moving some of your money to one of the banks listed here. Just be careful to read their terms and conditions and note any balance requirements.
The Bottom Line
As of May 2025, Shivalik Small Finance Bank and IDFC First Bank are among the top banks keeping their customers happy. They are offering one of the most competitive interest rates on savings accounts right now. Whether you are an investor or simply a person hunting for better returns on money, now could be a good time to see what these banks are offering.