# Savings interest rate payout **URL:** \ **Category:** Banks\ **Tags:** niyo-equitas\ **Created:** [June 30, 2021, 7:16pm UTC](https://community.goniyo.com/t/savings-interest-rate-payout/7457 "2021-06-30T19:16:07Z")\ **Posts on this page:** 1\ **Showing post:** 2
**Author:** ![ashrithjain](https://sea1.discourse-cdn.com/flex021/user_avatar/community.goniyo.com/ashrithjain/32/14659_2.png) [@ashrithjain](https://community.goniyo.com/u/ashrithjain)\ **Post date:** [June 30, 2021, 7:18pm UTC](https://community.goniyo.com/t/savings-interest-rate-payout/7457/2 "2021-06-30T19:18:54Z")
Hey @gpsuraj > [@On another topic](https://community.goniyo.com/t/7081/8): > > 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! --- _[View the full topic](https://community.goniyo.com/t/savings-interest-rate-payout/7457)._