Coming 1st April there will be a change in method of calculation of interest on your savings account as directed by The Reserve Bank of India.
Lets first understand how Banks Calculate Rates currently on your Saving Account
3.5 per cent per annum or 0.29 per cent per month on the minimum balance in savings account between the 10th of the month and the end of the month.
So we used to get interest on the minimum amount which remains in the bank account
After the announcement the Scenario Changes as Follow:
3.5 per cent per annum or 0.0095 per cent per day on the daily balance in your savings account.
Lets take a practical example to get a more clear picture
| 1 May
| 2 May
| 3 May
| 5 May
| 10 May
As Per current scenario you would get an interest of Rs 22.33 for May, that is 0.29 per cent on Rs 7,700 (the minimum balance in your account between the 10th and the 30th of April).
But After 1st April Interest earned will be Rs 48.82 for May. That is, 0.0095 per cent everyday on your balance of that day. 😎
Good News for people who Keep there money Ideal in Saving Account.