Savings Account Interest Rates
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A savings account is often the stepping stone into the financial world for most of us. It not only helps you carry out day-to-day transactions with ease but also earns interest.
The interest rate on savings accounts is revised from time to time. In most cases, it's credited quarterly into your account.
Savings Account Interest
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||
Nature |
Rate of Interest |
|
For balances upto Rs. 50 lakhs |
For balances above Rs. 50 lakhs |
|
A. Domestic (W.e.f. June 13, 2022) |
3.50% p.a. |
4% p.a. |
B. Non Resident (NRE/NRO) |
3.50% p.a. |
3.50% p.a. |
|
||
The bank offers floating rate linked savings deposit. Details of the same are as under :
Up to Rs. 50 Lakh |
3.5% p.a. |
Above Rs. 50 lakh and up to Rs 100 crore |
4% p.a. |
# Above Rs. 100 crore and up to Rs 600 crore* |
MIBOR + 5.2 bps p.a. |
# Above Rs. 600 crore and up to Rs 1000 crore* |
MIBOR + 50 bps p.a. |
# Above Rs. 1000 crore* |
MIBOR +70 bps p.a. |
*Note:
#The above rates are effective from 5th January’23
A savings account interest calculator is an easy-to-use online tool that helps you determine the interest amount you can earn on your savings account balance. This calculator is available on the websites of different banks and is usually free to use.
You can use a savings account interest calculator to know the interest you will earn on your savings account balance. A savings account interest calculator is extremely easy to use. You are only required to follow a few simple steps:
Step 1 - Go to the savings account interest calculator page.
Step 2 - Enter the balance in your savings account.
Step 3 - Enter the savings account interest rate of your bank.
Step 4 - Select the tenure for which you want to know your interest earnings.
As soon as you enter these values in a savings account interest calculator, it will display your savings account balance and the interest you will earn in the specified tenure instantly.
The interest rate on a savings account is calculated on the daily balance maintained in it. However, the interest is credited into a savings account only after the end of the quarter. Usually, it is paid on the first day of every quarter except the last quarter.
No. A savings account is the most flexible instrument where you can park your money. You can deposit and withdraw funds from it anytime without incurring any additional charges. The interest on a savings account is calculated on the daily balance, and hence, there is no maturity period. You can keep funds in your savings account for as long as you wish.
Usually, the interest earned on your savings account is credited to it on the first day of every quarter.
The frequency of savings account interest payout may vary from one bank to another.
The interest rate on a savings account is calculated on the daily balance.
The interest on a savings account is usually paid quarterly and credited to the account on the first day of the next quarter.
Banks calculate the interest on a savings account on the daily minimum balance.
