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?
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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.
| Originally posted by : Celiena goel | ||
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Yes, interest is calculated on daily balance maitained by you, in your account |
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Agree with Celiena...
Thanks Harini :)
Thanks Harini :)
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