August 13, 2013 9:04 am
How interest is calculated on the amount in Savings Bank Account? Is it calculated at the end of each month?
When banks deduct TDS from a customers Savings Bank Account?
1. You earn interest based on the closing balance you maintain every day
See second paragraph ‘How is savings bank interest rates calculated?’
2. There’s TDS applicable for Savings Bank Account. Also, interest upto Rs. 10000/- per year is tax free under Section 80TTA of the Income Tax Act
In point 2, it should be no TDS applicable for Savings Bank Account
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