Late last year RBI deregulated the interest rates on savings accounts and allowed banks to set their own rates. This resulted in banks raising their interest rates and creating two slabs of under a lakh and over a lakh.
For example, Yes Bank offers 6% on the saving bank balance of under Rs. 1 lakh and 7% on balances of over a lakh. Similarly, Kotak pays 5.5% for balances of less than a lakh and 6% on balances of over a lakh.
Does anyone have practical experience with this or knows for certain how this is going to be calculated?
Menu
How are banks calculating interest on savings accounts?
Replies (6)
For daily balances upto 1 lakh you would be paid interest at 5.5%/6% and for daily balance above 1 lakh you will be paid higher interest rate.
Systems used by banks like finnacle etc automatically takes care of this.
Yes, interest is calculated on daily balance maitained by you, in your account
| Originally posted by : Celiena goel | ||
 |
Yes, interest is calculated on daily balance maitained by you, in your account |
 |
Agree with Celiena...
Check this, it may help you..
https://business.rediff.com/report/2010/apr/12/perfin-how-daily-interest-on-savings-accounts-is-calculated.htm
Thanks Harini :)
Thanks Harini :)
Recent Topics :
- NRI, ITR-2 FY 2025-26: AIS Part B2 (SFT) shows hig
- Generate E-Way Bill for 4 Nos. Suppliers Involveme
- Section 54F Exemption
- Would you use a free, open-source alternative to s
- Business & Finance
- Report in GSTR 1 ( Credit Note ) for Wrong GST Rat
- Reply of summons issued under section 70 of the cg
- How to Bulk GSTIN Number Verify and Validation
- OPC Annual Filing Defaults – Need Guidance t
- OPC Annual Filing Defaults – Need Guidance t
Related Topics :
CAclubindia
