Key Changes in Savings Account Interest Calculation with New Uniform Rules

Mitali , Last updated: 23 December 2025  
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RBI has introduced new deposit rules from 1st January 2026, targeting greater transparency, uniformity and customer protection.

Key Changes in Savings Account Interest Calculation with New Uniform Rules
Savings Rule Key Change
Uniform Rate Same rate ≤ ₹1 lakh across banks
EOD Balance Interest on daily closing balance
Quarterly Credit Every 3 months

Uniform Interest Rate Up to ₹1 Lakh Balance

Under this new rule, all banks must offer the same interest rate on savings balances up to ₹1 lakh, regardless of whether it's SBI, HDFC, ICICI or any other bank. Above ₹1 lakh, banks can set their own rates.

For Example

With ₹1,20,000 balance in saving account, up to ₹1,00,000 interest rate will be same, while the remaining interest on ₹20,000 can be decided by bank's chosen rate.

 

Interest Calculated on End-of-Day Balance

Interest on savings accounts shifts from average monthly balance to daily End-of-Day Balance which means now bank will calculate interest only on the balance available at the end of each day.

For Example

Time Transaction Balance
Morning Opening Balance ₹20,000
Afternoon Cash Withdrawal ₹6,000
Evening Cash Deposited ₹2,000
 

Interest to be earned on ₹16,000 i.e., End-of-Day Balance.

Interest To Be Credited Quarterly

Calculated daily interest is credited quarterly in every 3 months - Apr-Jun, Jul-Sep, Oct-Dec, Jan-Mar i.e., 4 times in a year.

This rule will be applicable for all banks.

Earlier, some banks credited interest monthly, half-yearly, or annually. But now there will be only one system - quarterly credit.


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Mitali
(Finance Professional)
Category Others   Report

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