Question about interest rates


A query about the savings bank interest rates.

For example these are the interest rates from tomorrow

Upto Rs.1 Lac 3.5% p.a.
Above Rs. 1 Lac upto Rs. 5 Lacs: 6% p.a.
Above Rs. 5 Lacs upto Rs. 50 Lacs: 7% p.a.
Above Rs.50 Lacs: 5.5% p.a

Suppose one has a balance of Rs. 1.50 lacs then by do you follow progressive interest rates? Progressive interest rate means that 3.5% on 1 lacs and 6% on 50 thousand. Or do you simply give 6% on the whole amount of 1.50 lacs?


The interest paid is progressive.

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Hey @billubakra !

Case Scenario: User has deposited INR 1,50,000 in NiyoX Equitas Savings Account.

The first one lakh rupees will earn 3.5% interest, the next fifty thousand rupees will earn 6.0% interest. Below is how to calculate the same:

In NiyoX Equitas SA, the interest payouts are paid on quarterly basis,

The first INR 1,00,000 will earn 3.5% interest p.a . Here’s how to calculate the same,
(3.5/100) x (1,00,000) x (3/12) = ₹875 (This is the exact amount payout on quarterly basis)

The next INR 50,000 will earn 6.0% interest p.a. Here’s how to calculate the same,
(6/100) x (50,000) x (3/12) = ₹750 (This is the exact amount payout on quarterly basis)

If both the payout segments are combined, you earn a total of ₹1,625 per quarter.
So, multiplying the same by 4, you earn ₹6,500 per year at a cumulative interest of 4.34% p.a if you deposit INR 1,50,000.

Here’s how to calculate the cumulative interest:
(((3.5/100) x (1,00,000)) + ((6/100) x (50,000)) / 1,50,000) x 100 = 4.34%

You earn ₹17.80 per day which earns you a cumulative interest of 0.00178% per day.

Hope this helps you calculate and manage your funds in a better fashion. If you do have further queries, feel free to reach out to us!

P.S: Interest is calculated on End of Day balance

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Thanks. Is that mentioned anywhere on Equitas’s website? Wasn’t able to find it.

I have not checked equitas website. Maybe it is there in the MITC. You can check that. Generally banks follow this thing only. Exception was IDFC and it also now pays progressive interest like equitas.

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Thanks. What is MITC?

Most Important Terms and Conditions or simply terms and conditions. You can also check the schedule of charges or the FAQs.
Anyway, I found it on the equitas website as well, refer highlighted. The link is Get a no balance account in 5 mins | Selfe Savings

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