You may know ‘n’ number of ways to earn money but for saving? Every richest person on the earth knows how to manage their money and how to spend it wisely. Saving is one of the key factor that makes the difference between common man and rich man. By reading this article, we’re are 100% sure that you’re going to save minimum 1000Rs from next month.
How the savings account interest is rates are calculated?
As per the new RBI mandate, interest on savings account is calculated on a daily basis based on your closing amount. The interest accumulated will be credited to your account on half yearly basis or quarterly basis depending on the savings account type and the bank’s rule. However, recently, the Reserve Bank of India has advised the banks to credit the interest on Savings Bank account on quarterly basis as it will be more beneficial to the customers.
Generally, the formula described below is used to calculate the monthly interest for a general savings account.
Monthly Interest = Daily Balance * (Number of days) * Interest / (Days in the year)
Assuming the daily balance is Rs. 3 lakhs and the interest on savings account is 4 per cent per annum, the calculation will work out as follows.