Mumbai, Jan. 8 -- IDFC First Bank has cut interest rates and tweaked slabs for savings accounts by up to 200 basis points for certain categories, marking one of the sharpest reductions by a private lender in recent months, according to a revised rate card effective 9 January.

Under the revised structure, balances of Rs.1 lakh to Rs.10 lakh will earn 5% interest as against the 7% that the bank earlier offered for the slab of Rs.5 lakh to Rs.5 crore. This effectively represents a 200-bps cut in interest rate for the popular slab, which had earlier helped the bank attract large inflows from retail and high-value customers.

While the interest rate on a balance of below Rs.1 lakh remains at 3%, that for the Rs.10 lakh to Rs.10 crore slab wil...