Bank Account: How much interest is received daily on a savings account, see the calculation here!

PC: India Today

Having a savings account in a bank is a common practice. Because the person deposits money in the savings account for safety. A savings account does not have any restrictions or maturity period like FD or other savings schemes. Hence you can deposit and withdraw money from the account whenever you want. Bank gives normal interest on savings accounts.

Usually, up to 3 percent interest is received on the savings account opened in the bank. However, some private and small finance banks offer up to 7% interest on savings accounts. Actually, it depends on the deposit limit.

Money is deposited in lump sums and regularly in FD or other savings schemes. Because of this, the customer knows the interest received on these schemes, but if money is transacted daily from the savings account, then how is the interest added to it?

PC: lokmat.news18

Most of the customers do not know how the interest is calculated on the money kept in their savings accounts. As per RBI rules, banks calculate interest on savings accounts on a daily basis. Some banks calculate quarterly and some half-yearly. Every time the compound interest starts appearing in the passbook.

Most banks have a savings account calculator available on their website. Where you can calculate the interest by filling in the required information. Only in this, you will know how much interest you will get in a year on the fixed amount. More and more money keeps coming into the savings account. In this case, how will the interest be calculated?

Suppose you have a savings account in a bank with a deposit of Rs 2 lakh. The bank is paying 4% per annum interest on the savings account, so the annual interest is Rs 8,000. If you calculate this amount of interest for 365 days, the daily interest would be Rs 21.91.

PC: lokmat.news18

Thus the monthly interest is Rs.666. If you withdraw Rs 1 lakh out of Rs 2 lakh, the daily interest will be calculated on the remaining Rs 1 lakh. Interest is then credited to the savings account on a monthly or quarterly basis.

All government and private banks have different interest rates. The country's largest public sector bank SBI is paying 2.7 percent interest, while private sector giant HDFC Bank is paying 3.5 percent interest on savings accounts.