How do the banks calculate the interest for the amount in our Savings Accou
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kbharadwaj81
enidhi
vishwas.tp
7 posters
Money Talk India Finance Forum (MTIFF) :: Savings & Investment Talk :: Savings by Type :: Savings Bank Account
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How do the banks calculate the interest for the amount in our Savings Accou
As per my knowledge it is a Simple interest but in a savings account the money will be rolling daily. What amount do bank consider as Principal amount for interest calculation.
Re: How do the banks calculate the interest for the amount in our Savings Accou
What I had learnt in childhood was this:
For savings account minimum balance between 10th and 31st of the month is considered as principal for that month.
These days some banks follow the concept of Average Quarterly Balance...
For savings account minimum balance between 10th and 31st of the month is considered as principal for that month.
These days some banks follow the concept of Average Quarterly Balance...
Re: How do the banks calculate the interest for the amount in our Savings Accou
Ok... SO it depends on the Bank...
Re: How do the banks calculate the interest for the amount in our Savings Accou
Not sure of current scenarioI guess traditional banks (Syndicate, SBI, Canara etc) still follow old practice while ICICI, AXIS etc use AQB.
Will check this and update
Will check this and update
Re: How do the banks calculate the interest for the amount in our Savings Accou
Ok thanks....
I'll also try to find out......
I'll also try to find out......
Re: How do the banks calculate the interest for the amount in our Savings Accou
ICICI Bank has confirmed that they are following traditional method:
"We request you to note that the savings bank account interest calculated monthly on the lowest balance available between 10 to 31st of the month and this interest amount is credited half yearly i:e, March & September of every year."
"We request you to note that the savings bank account interest calculated monthly on the lowest balance available between 10 to 31st of the month and this interest amount is credited half yearly i:e, March & September of every year."
Re: How do the banks calculate the interest for the amount in our Savings Accou
check this link
http://kingrooster.wordpress.com/2007/06/15/savingsaccounthowisinterestcalculated/
http://kingrooster.wordpress.com/2007/06/15/savingsaccounthowisinterestcalculated/
kbharadwaj81 MoneyTalker
 Number of posts : 13
Registration date : 20080316
Re: How do the banks calculate the interest for the amount in our Savings Accou
Yes, that post confirms what I have already written..
Re: How do the banks calculate the interest for the amount in our Savings Accou
Ok I understood the concept..... Thanks
I got the same reply from Citibank. Here is the response from them
"Dear Mr. Vishwas, This is with reference to your query dated April 10, 2008. We confirm that the interest rate applicable to your account is 3.5%. Interest is credited to your account halfyearly on the 1st of March and 1st of September i.e the interest amount is credited twice a year on 1st week of March for the period 1st September of the previous year to 28th February and 1st week of September for the period 1st March to 30th August. The interest is calculated on a monthly basis. Every month the interest accrues on the least balance between the 10th and the last day of the month. [ Interest = amount * rate of interest * number of days in a month divided by Total number of days in a year ] Interest is credited to your account halfyearly on the 1st of March and 1st of September. Please note that as per the standard banking norms, the Savings Account interest is calculated on the least balance maintained from the 10th to the last date of the month."
I got the same reply from Citibank. Here is the response from them
"Dear Mr. Vishwas, This is with reference to your query dated April 10, 2008. We confirm that the interest rate applicable to your account is 3.5%. Interest is credited to your account halfyearly on the 1st of March and 1st of September i.e the interest amount is credited twice a year on 1st week of March for the period 1st September of the previous year to 28th February and 1st week of September for the period 1st March to 30th August. The interest is calculated on a monthly basis. Every month the interest accrues on the least balance between the 10th and the last day of the month. [ Interest = amount * rate of interest * number of days in a month divided by Total number of days in a year ] Interest is credited to your account halfyearly on the 1st of March and 1st of September. Please note that as per the standard banking norms, the Savings Account interest is calculated on the least balance maintained from the 10th to the last date of the month."
Re: How do the banks calculate the interest for the amount in our Savings Accou
many people run out of money by month end and their account balance nears 0...This way banks save lot of interest....
ashwini MoneyTalker
 Number of posts : 26
Age : 41
Location : Udupi
Registration date : 20080202
Re: How do the banks calculate the interest for the amount in our Savings Accou
Really thanks for all these information's
Re: How do the banks calculate the interest for the amount in our Savings Accou
hello everyone..
ok fine..
thanks a lot for your post..
regards,
phe9oxis,
http://www.guidebuddha.com
ok fine..
thanks a lot for your post..
regards,
phe9oxis,
http://www.guidebuddha.com
srujanaa4 MoneyTalker
 Number of posts : 60
Registration date : 20100804
Re: How do the banks calculate the interest for the amount in our Savings Accou
hi
need your help 
can somebody giveme some reference or information about any "finance forums"
regards,
phe9oxis,
http://www.guidebuddha.com
need your help 
can somebody giveme some reference or information about any "finance forums"
regards,
phe9oxis,
http://www.guidebuddha.com
sru123 MoneyTalker
 Number of posts : 54
Registration date : 20100807
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