Savings interest rate payout

[gpsuraj (Sai Suraj Gadey)]

When will interest rate credit in NiyoX savings?
Is it quarterly payout??
Thank you

[ashrithjain]

Hey @gpsuraj

@Bansari

Kindly refer this for better understanding as to how the interest is calculated.

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.

Hope this helps!

[Sagar_Katara]

It would be good to have a calculator so we can see how much we will get every quarter.

[Aswathy_Nambiar]

Hey Sagar,

You can find the interest calculator here: Online Savings Account - Zero Balance Digital Saving Account with NiyoX

Happy weekend!

[gpsuraj (Sai Suraj Gadey)]

Hey, I calculated this excel for every addition of 1 lakh, how the average interest rate varies.
here’s the screenshot
By the way, the Left column(B) in the pic is on the addition of every 1 lakh