If you have a salary account/savings bank account in a bank, it is better if you withdraw money as per your requirements instead of at one go. From next April, the balance in your savings account will earn interest on a daily basis, following the Reserve Bank of India’s decision to implement new interest calculation methods on such accounts.
The payment of interest on SB accounts (3.5 per cent at present) would be calculated on a daily product basis with effect from April 1, 2010. For Rs 1,000, you will get an annual interest of Rs 35 which will be divided into per day interest to be credited to one’s account.
“This benefits the customers in a significant way as daily interest will automatically be calculated by core banking system and will get credited to the customers’ accounts. To that extent, it would hit banks financially,” Ms Renu Challu, Managing Director, State Bank of Hyderabad, told Business Line.
At present, banks calculate interest on SB accounts on the minimum balances held during the period from the 10th day to the last day of each calendar month. This means that one would end up either in not getting the interest for money kept from 1st to 10th or only on the minimum balance maintained during the last 20 days of the month.
The new method would be beneficial to the salaried class from the corporate and public sector and pensioners (with accounts in public sector banks), said an economist with a large public sector bank.
Interest on daily basis is expected to bother especially private banks which operate large corporate accounts.
“Generally, most of the middle-class salary/SB account holders are now getting interest on minimum balance as reflected in the account on the last day of the month. The accounts of IT professionals and others tend to show considerable balances in the first two weeks on which we will now have to pay interest,” a senior official of ICICI Bank, who did not want to be identified, said.
Some bankers, however, feel that the higher cost effects are likely to be offset, as most banks align their short term deposits — 15 days, 30 days and 46 days — to the SB rate of 3.5 per cent. For banks, this may also mean that the chase for more current and savings account (CASA) is over. This could imply a switch back to traditional term deposits. Another repercussion may be on money market funds which were also offering slightly higher rates than SB rates. These funds are likely to take a hit.
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September 9, 2009 at 7:50 am
Dear Sir,
I have some grievance to be redressal, Rs 217113/- credited late in saving bank a/c for near about period 04 Mar 09 to 17 Apr 09 ( 43 days). You are therefore,requested to calculate the interest on this amount for the 43 days @ 3.50. Please let me how much interest I will get. How to work out also let me. Please flash information on email ID : pbgurdevsingh@gmail.com
With kind regards.
Yours
pbgurdevsingh
September 9, 2009 at 7:58 am
Dear sir,
I have some grievance for redressal, Rs.217113.00 credit in saving bank a/c for the period from 04 Mar 09 to 17 Apr 09.Please let me how to calcualte the interest for late credit amount for 43 days. Your are therefore,requested to calculate the interest for late credit the above amount in saving a/c . also let me how to calculate the interest.
please flash on my emailID: pbgurdevsingh2145@gmail.com
with Kindest regards.
Yours sincerely,
pbgurdevsingh
September 9, 2009 at 7:58 am
Dear sir,
I have some grievance for redressal, Rs.217113.00 credit in saving bank a/c for the period from 04 Mar 09 to 17 Apr 09.Please let me how to calcualte the interest for late credit amount for 43 days. Your are therefore,requested to calculate the interest for late credit the above amount in saving a/c . also let me how to calculate the interest.
please flash on my emailID: pbgurdevsingh2145@gmail.com
with Kindest regards.
Yours sincerely,
pbgurdevsingh
March 12, 2010 at 10:20 pm
it is not that much of help full bicose i wanted to know that the this scam only a plays those how get the s/b a/c from 1-2-2010 or all of those how all rad have their s/b a/c in difarent banks
May 8, 2011 at 8:16 pm
Real brain power on display. Thnaks for that answer!
May 11, 2011 at 5:16 am
dear sir
this is sagar kamble sir i am a student of commerce. sir from very deeply heart i wish to learn how to calculate saving accounts interest on half yearly, if its possible please sent me some examples how to calculate to my salf please sent it sir!!!!!
thank you!!!!
May 11, 2011 at 5:19 am
dear sir
this is sagar kamble sir i am a student of commerce. sir from very deeply heart i wish to learn how to calculate saving accounts interest on half yearly, if its possible please sent me some examples how to calculate to my self please sent it sir!!!!! on my email id :- kamblesagar.2000@rediffmail.com
August 21, 2011 at 11:40 pm
i want know how to calculate the duration of the interesting
December 25, 2011 at 7:33 am
dear sir,
I have salary s/b a/c. With HDFC bank. As per their rules, it indicates that no interest will be applicable. So, can I get interest on balance amt. In salary sb a/c. As per RBI present policy?
December 25, 2011 at 8:14 am
Yes. You should get the interest amount. If you are not getting, please contact HDFC customer support.
Thanks,
Krishna