Interest Rate Change May 2025: Shivalik and IDFC First Bank Announce New Savings Rates The month of May 2025 has begun with a major update for depositors and retail investors.
Two key private sector banks — Shivalik Small Finance Bank and IDFC First Bank — have revised their interest rates on savings accounts, with changes coming into effect from May 1, 2025.
This interest rate change brings fresh opportunities for customers to earn more on idle money kept in savings accounts.
Shivalik Small Finance Bank Interest Rate Change May 2025
As part of the Interest Rate Change May 2025, Shivalik Small Finance Bank has increased savings account interest rates ranging from 2.50% to 8.20% based on the deposit amount. This revision aims to give higher returns to depositors without requiring them to lock funds in fixed deposits.
New Interest Rate Slabs – Shivalik Small Finance Bank
| Deposit Range | Interest Rate |
|---|---|
| Up to ₹1 lakh | 2.50% |
| ₹1 lakh – ₹5 lakh | 3.25% |
| ₹5 lakh – ₹10 lakh | 3.50% |
| ₹10 lakh – ₹25 lakh | 4.00% |
| ₹25 lakh – ₹50 lakh | 6.00% |
| ₹50 lakh – ₹5 crore | 7.00% |
| ₹5 crore – ₹7 crore | 7.25% |
| ₹7 crore – ₹10 crore | 7.50% |
| ₹10 crore – ₹20 crore | 7.95% |
| Above ₹20 crore | 8.20% |
These rates offer an attractive alternative to fixed deposits and can help investors get better returns from their regular bank accounts.
IDFC First Bank Revises Savings Account Rates – May 2025 Update
Alongside Shivalik, IDFC First Bank has also joined the Interest Rate Change May 2025 wave by updating its savings account interest slabs. This move aligns with the bank’s goal of offering competitive returns and attracting high-value retail and corporate depositors.
Updated Interest Rate Slabs – IDFC First Bank
| Deposit Range | Interest Rate |
|---|---|
| Up to ₹5 lakh | 3.00% |
| ₹5 lakh – ₹10 lakh | 5.00% |
| ₹10 lakh – ₹25 crore | 7.25% |
| ₹25 crore – ₹50 crore | 6.50% |
| ₹50 crore – ₹100 crore | 6.00% |
With up to 7.25% interest, IDFC First Bank offers a strong incentive for account holders to park large sums in savings accounts while maintaining liquidity.
Why the Interest Rate Change May 2025 Is Important
- Encourages savings with higher interest rates
- Offers an alternative to low-return FDs and mutual funds
- Helps account holders get inflation-beating returns
- Increases competition among banks, benefiting customers
FAQs: Interest Rate Change May 2025
Q1. What is the Interest Rate Change May 2025 all about?
It refers to the revision in savings account interest rates by Shivalik Small Finance Bank and IDFC First Bank starting from May 1, 2025.
Q2. What is the maximum interest rate offered by Shivalik Bank?
Shivalik Bank now offers up to 8.20% on deposits above ₹20 crore.
Q3. How much interest does IDFC First Bank offer now?
IDFC First Bank offers up to 7.25% on savings deposits from ₹10 lakh to ₹25 crore.
Q4. Are these interest rates applicable to fixed deposits?
No, these revised rates are only for savings accounts.
Q5. Should I switch my savings account to one of these banks?
If your current bank offers lower interest and you maintain a high balance, switching could help you earn significantly more.
Final Thoughts on Interest Rate Change May 2025
The Interest Rate Change May 2025 is a welcome move for savers and retail investors. Both Shivalik and IDFC First Bank have launched market-beating rates on savings deposits, allowing investors to earn high returns with full liquidity. It’s a smart time to review your existing savings strategy and consider shifting funds to benefit from these new rates.
