We’re here to make banking smarter, safer and simpler for you. And while we’re at it, here’s breaking down some basics for you.
Ever wondered how your savings account interest rate is calculated? The answer is here:
At present, your bank calculates interest rate on a daily basis on your closing amount. The interest accumulated is paid quarterly or half-yearly depending on your bank. Ideally, the RBI expects banks to credit savings bank interest rates on a quarterly basis.
So here’s the calculation. Assume (just assume ) that your bank provides you with an interest rate of a whopping 7% above ₹1 Lakh in your savings account. (And below ₹1 Lakh, you’re getting an interest of 3.5%)
So, for a balance <= ₹1Lac, 3.5% interest rate is provided on the whole balance.
For a balance > ₹1 Lac, 3.5% interest rate is provided on the ₹1 Lac, and 7% interest rate is provided on the remaining balance.
Interest is calculated daily on EoD balance: (EoD Balance) * (3.5% or 7% interest) * (Number of days in quarter/365)
Interest is accrued on daily basis and is credited to the customer’s savings account at the end of the quarter.
@Aswathy_Nambiar - Just wanted to clarify this -
So the 1st 1 Lakh amount will not get interest @7% - even if we maintain it through out the year?
I actually opened account considering the 7% interest rates (on which complete branding of NiyoX and Equitas bank is going on ) and somehow planned and bought together 1 Lakh rs and was just planning to deposit in the NiyoX account!!
And now I get to know that the 1 Lakh will only earn interest rates of 3.5% which is as same as my normal bank rates - great!!
Whats the point of pushing people saying 7% interest and luring them to open accounts?
You will be earning 3.5% of interest p.a. on your first ₹1 lakh balance. On amounts above ₹1 lakh, you will be earning an interest of 7% p.a.
Interest will be calculated based on your daily EOD balance and credited to your account on a quarterly basis.
You will be earning 3.5% of interest p.a. on your first ₹1 lakh balance. On amounts above ₹1 lakh, you will be earning an interest of 7% p.a.
Interest will be calculated based on your daily EOD balance and credited to your account on a quarterly basis.
It doesn’t make sense of depositing for 3.5% simply wasting time n money by parking 1lak for 3,5% and then also for 2lak we will get only 5.2% thisis really a bad move. .!!!
There will be very huge number of people will have less than 1lak.!!
) that your bank provides you with an interest rate of a whopping 7% above ₹1 Lakh in your savings account. (And below ₹1 Lakh, you’re getting an interest of 3.5%)
