IDFC FIRST Bank | Savings Account

When you think of any bank, one of the core products offered is a savings account. Most banks credit interest on savings accounts in India on a quarterly basis, believe it or not, since Independence in 1947. But IDFC FIRST Bank, is a new-age bank, and operates under the principle that the customer’s interest comes first. So IDFC FIRST Bank is the first Universal Bank in India which credits interest to customers on a monthly basis.
It may not seem like much initially, however here’s the thing. When your account is credited interest monthly, the advantage is that, for the next month, you earn interest on the interest earned in the previous month in addition to earning interest on the principal. This is the power of monthly compounding. So, with every passing month, your savings balance will keep growing faster.

Let’s take an example- When you open a savings account with an average balance of Rs 5 lakh, with most other banks, you would earn an interest of 3% per annum on a quarterly basis, which will earn you about Rs. 15,208 at the end of the year. However, for the same amount, with IDFC FIRST savings account, you get an interest rate starting at 4% per annum payable monthly, which will earn an interest of Rs 20,371 at the end of the year. You see, this is a whole 34% higher interest on your money. Which means an extra 5000 plus rupees at the end of the year as compared to most other banks. At higher slabs, the difference is even more pronounced.

That’s not all, usually Banks charge fees to customers on a variety of services say for non-home branch transactions, Cash transaction at branches, IMPS, RTGS, NEFT, SMS alert charges, issue of duplicate statements, ECS return charges, and a lot more. You may not realise it, but over time it adds to a lot of fees for customers. But IDFC FIRST Bank, believe it or not, charges ZERO Fees on 25 such services, under their “Customer First” policy. So, this way, over time, customer get to earn more interest on savings through monthly compounding at higher rates, but even more importantly, they pay drastically reduced fees, if at all, and save a lot more.

Video by Think School

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