Hi,
I just want to know how the intrest is calculated on the savings account in a particular bank. I do know that the intrest rate is different in various banks. But what I am not clear is on how its exactly calculated. I heard that its on daily basis. So does it mean its calculated as below:
on Apr1 2012 – 10000 deposited
on Apr2 2012- 20000 deposited
on Apr3 2012- 30000 withdrawn
on Mar31 2013 – 10000 deposited.
Suppose the savings rate is 5% for less than 1 lakh and 6% for more than 1 lakh
The above is an example. So for the above,
Intrest accrued for Apr1 will be : (10000*5%)/365 = Rs. 1.37 (rounding to two decimal)
Intrest accrued for Apr2 will be : (20000*5%)/365= Rs. 2.74
Intrest accrued for Apr 3 is : 0
So the total 1.37+2.74 will be paid on Sept 1 2012 (intrest will be paid on semi monthly basis)
For Mar 31 2013, the total will be 10000+2.74=10002.74
So for this, the intrest will be (10002.74*5%)/365=1.37
and this will be paid on Apr 1 2013
Can somebody confirm if the above calculation is correct?
If not pls let me know how the intrest on savings account is calculated for the above example.
Also, if there are multiple deposits done on a particular day, will the lowest or the highest is considered?
Even in the above example, if the deposit is done on Apr 1st, will it be calculated for Apr 1st or from Apr 2nd?
PK