IDFC First Bank Savings Account All Details & FAQ

This was originally posted by Ritik Singh on our FinTalks Facebook Group on 9th December 2020.

WHAT ACCOUNTS CAN I OPEN ONLINE?

You can open two types of accounts in IDFC: one with 10K MAB (Monthly Average Balance) and the other with 25K MAB.

IS THERE ANY ZERO BALANCE ACCOUNT?

IDFC offers “Pratham Savings Account” (BSBDA), a basic zero balance savings account.

You can also check Niyo IDFC, which is essentially an IDFC zero balance account with Niyo services - it can be opened online. You’ll get a free Visa debit card and interest rates from IDFC bank.

WHAT’S THE INTEREST RATE ON THE ACCOUNT?

IDFC First Bank advertised 7% Interest on Savings Account in the beginning, but it subsequently decreased in the later months.

Update 1st February 2021: The interest rate has been reduced from 7% to 6% per annum. Interest is paid every quarter (every three months: Oct-Nov-Dec will be paid in December). By keeping 1 Lakh rupees, you get Rs. 1,500 as interest every three months.

Update 1st May 2021: The interest rate has been reduced from 6% to 4% per annum for balances up to 1 Lakh, and 4.5% per annum for balances from 1 Lakh to 10 Lakhs. In case you are wondering where to shift your idle money, read this thread: Highest Interest Rates on Savings Bank Account.

Download the PDF to read the full details!

DOES IDFC BANK OFFER CREDIT CARDS?

Yes. IDFC First Bank is offering 4 Credit Cards. All of them are Lifetime Free. Check out my detailed post on IDFC First Credit Cards with Comparison.

[One interesting feature about IDFC Credit Cards is the Complimentary Railway Lounge experience, which very few credit cards offer.]

HOW TO OPEN THE ACCOUNT?

Click the link ( DM me for the referral link ) enter your details, choose the account you wish to open (10K or 25K), fill up further details, and add the funding amount through the debit card.

Once the payment is made, you can generate a net banking User ID and password. You’ll also get the link for Video KYC in 1-2 days. If you don’t get the link in 1-2 days, call customer care.

The account opening procedure is 100% online- no need to visit the branch.

NO BRANCH IN MY CITY, CAN I STILL OPEN AN ACCOUNT?

Yes, the account opening procedure is completely online. You can select the nearest branch to you while opening the account. Ensure that the branch is under 70-100Kms so that you can go if any work has to be done.

WHICH DEBIT CARD DO I GET?

If you open the 25K MAB account, you’ll get VISA Signature Debit Card . Whereas, with a 10K MAB account, you’ll get VISA Classic Debit Card .

Both the cards are lifetime free- no charges, provided that you maintain the required MAB.

WHAT IS INCLUDED IN THE WELCOME KIT?

You get a chequebook and debit card. You’ll have to go to the branch for the passbook.

WHAT ABOUT THE HOME BRANCH?

There’s no Home Branch Concept in IDFC. You can do any work at any branch.

WHAT ARE THE ACCOUNT OPENING OFFERS?

If you opt for the 25K Signature account, you can get up to Rs. 3,000 vouchers for completing certain tasks. Whereas those opening 10K Classic account will be eligible for vouchers worth Rs. 1,500.

WHAT ARE THE TASKS TO GET VOUCHERS?

For 25K Signature Account (Up to Rs. 3,000):

  • Account Opening Voucher (Rs. 250 Voucher)

  • Add beneficiary and do a fund transfer of min. 2K (Rs. 500 Voucher)

  • Register on WhatsApp Banking (Rs. 250 Voucher)

  • First Debit Card Transaction of min 1K (Get 10% cashback up to Rs. 250)

  • Book FD of min. 25K or RD of min. 5K (Rs. 250 Voucher)

  • First UPI Payment of min. 1K (Rs. 250 Voucher)

  • First Bill payment using the Mobile app or Net banking min. 1K (Rs. 250 Voucher)

  • Spend Rs. 20,000 or more with the debit card (Rs. 1000 Voucher)

For 10K Classic Account (Up to Rs. 1,500):

  • Account Opening Voucher (Rs. 250 Voucher)

  • Book FD of min. 25K or RD of min. 5K (Rs. 250 Voucher)

  • Add beneficiary and do a fund transfer of min. 2K (Rs. 500 Voucher)

  • First Bill payment using the Mobile app or Net banking min. 1K (Rs. 250 Voucher)

  • First UPI Payment of min. 1K (Rs. 250 Voucher)

HOW MUCH TIME DO I GET TO COMPLETE THESE TASKS?

You need to complete these tasks within 30 days of account opening. If you delay, you’ll only get vouchers for tasks you did in the time period.

HOW TO COMPLETE THE DEBIT CARD TASK TO GET VOUCHERS IN THE 25K SIGNATURE ACCOUNT?

Firstly, make the FIRST payment of at least Rs—2,500 from your VISA Signature Card. You will get a 10% cashback of Rs. 250 (maximum is Rs. 250) on 15th of the next month back in your account.

Then, spend Rs. 20,000 on your debit card to get Rs. 1000 voucher.

CAN I LOAD MONEY TO PAYTM WALLET USING THE CARD TO COMPLETE THE TASK?

Avoid doing wallet reloads for 20K task, Better add money to Kotak 811, buy Amazon Gift Vouchers or order stuff for your friends and family.

WHERE AND WHEN WILL I GET THE VOUCHERS? WHERE TO REDEEM THEM?

You will get the vouchers in your registered email ID within 30 days of doing the tasks. If you don’t get the vouchers, call customer care, and they’ll initiate it manually.

They will give you codes to redeem on Gyftr. You need to open the link to Gyftr, enter the code received, and then select the brand voucher you need, say Amazon, Flipkart, Grofers, etc.

The voucher will then sent to the email ID and mobile number you give while redeeming it.

It’d be better to redeem these vouchers for Amazon Gift Cards. You can not only go shopping but also pay bills and more.

WHAT IS THE BOOKMYSHOW OFFER? IS IT AVAILABLE ON GIFT CARDS?

The Visa Signature Card you get with the 25K account comes with 100% cashback on BookMyShow up to Rs. 250 offer. Very simple- you spend 250 on BMS, you get 250 back in your account under 7 days.

Since we are avoiding theatres in the pandemic, you can also buy Rs. 250 Gift Card on BookMyShow using the card. You will get the amount back within 1-7 days in your account.

The Gift Card comes with a 12-month validity- so buy it at the end of the month (say 25 Dec) so that it has a longer validity.

You can do this once every month till March 31, 2021 (as of now).

HIDDEN CONDITION FOR BMS OFFER:

Your last month’s Minimum Balance should be above 25K (signature account) to be eligible for BMS cashback.

I opened the account on Sep 27 and did a BMS transaction in October. Upon asking CC why I didn’t get the voucher, they said that last month’s balance was below MAB. But how can I maintain it if the account itself is opened in the last few days of the month? Right?

So they gave me a Rs. 250 voucher instead, which I later redeemed on Amazon.

OTHER OFFERS?

They usually give spending offers on debit card. Like spend Rs. 20000 and get Rs. 5000 voucher, spend Rs. 25K and get Prime Membership and more.

OTHER GOOD THINGS ABOUT OPENING THE ACCOUNT-

IMPS transfers are free while most other banks charge Rs. 5 + GST and Rs. 15 based on the amount. Chequebook, too, is free.

Customer care is free and available even at 11PM; it picks calls in 1-5 minutes in my experience. You can also request a callback through the website.

For comparison, banks like Kotak, ICICI Bank, etc., charge Rs. 1 per minute and take long to connect.

Moreover, the Visa Signature card you get with the 25K account comes with a daily ATM limit of 1.5L , unlimited free withdrawals at any ATM in India.

They will only charge you if your minimum balance falls below the criteria. More on charges.

DO WE GET OFFERS LIKE HDFC AND ICICI BANK?

NO. You don’t get discounts on Amazon and Flipkart with IDFC cards like ICICI, HDFC, SBI, etc.

Instead, they do give occasional offers. A lot of people got offers to spend and get vouchers in the Diwali month.

Also, all the VISA Signature offers are available on the VISA Signature card. Same for the VISA Classic card.

Offers on Visa Signature | Offers on Visa Classic | Insurance Coverage on Debit Card

DO WE GET CREDIT CARD OFFERS?

IDFC Bank hasn’t launched any credit cards yet for customers. However, they will be launching one soon. They have recently issued an IDFC Family Credit card for employees.

WHY IS THIS BANK OFFERING SUCH A HIGH-INTEREST RATE?

The bank needs customers- they want to increase their CASA (Current & Savings Account) ratio. They want as many people as possible to keep money in their bank.

A higher CASA ratio means a higher portion of the bank’s deposits have come from current and savings deposits, i.e., a low cost of obtaining funds.

The bank’s current focus- increase the CASA ratio, focus on retail loans (usually small loans), resulting in lesser NPA.

BANK’S SITUATION AS OF THE LAST QUARTER-

The bank posted a net profit of ₹101.47 crores as of last quarter (September). The Gross NPA was 1.62%, and the net NPA was 0.43%.

Update: IDFC Bank has posted a net profit of ₹130 Crores for the December quarter. Gross NPA stands at 1.33% while net NPAs improved to 0.33%.

IS IDFC FIRST BANK SAFE?

Yes, the bank is safe for keeping up to 5L. I’m using it as my main bank account. Also, it has good management, thanks to CEO V. Vaidyanathan (trusted guy). The bank has reported profits as of last quarters.

HOW MUCH AMOUNT SHALL I KEEP HERE?

There’s no denying that the Indian banking system isn’t very healthy. So, keep under 5 Lakh rupees in this account since that’s the maximum insured by DICGC.

Treat the amount you keep here as you’re investing in a liquid fund. While the bank is safe and in good hands, do not keep all your money here.

LAST THING TO NOTE:

Open the account online and NOT offline. The voucher offer is only valid when you open the account online. Also, use a referral link for opening the account.

Thank you for reading. Ask if any other doubts.

PLEASE DO NOT POST REFERRAL LINKS IN COMMENTS.