Savings accounts earn decent interest to boost an individual’s income. It is credited monthly for a steady and predictable earning. You are now able to save more and make the most of this tool to build a better financial future. A reliable Indian bank offers up to 6% interest on savings account. This is applicable across all types like a senior citizen account, minor’s savings account or a corporate salary account.
It is a good idea to know the interest calculation process. This helps understand how much you can earn additionally against a specific amount with your bank for a period. It also lets you figure out the monthly interest credit on savings to be able to plan and tick off small financial goals if any. Here’s a look.
Savings Account Interest Simulator
Work closely with a bank that provides a free online calculator. The best one is quick and convenient and delivers the most accurate results. Using an automated tool is beneficial to reduce human errors or make humongous calculations manually.
Simply enter your bank account balance and choose the existing interest rate. The interest is calculated on progressive balances in each interest rate slab, as applicable. The whole process takes no more than a few seconds. You can also see the extra amount that is earned to further increase your overall income. It is an added benefit offered by selected banks in India to be able to maximise a savings account. Move the slider as many times as you wish to and arrive at a final amount. Now start planning your savings accordingly to reach the desired corpus within a particular time frame.
Although the interest is calculated on a daily balance amount, it is credited to your account on a monthly basis. The earlier facility of interest credit on a quarterly basis permitted by the RBI has been discontinued from June 30, 2021. Knowing these before you open an account online can ensure a seamless and superior banking experience.
Benefits of a Savings Account Interest
Investors can enjoy the concept of compounding interest to build up their savings. You can also create sufficient inflation-adjusted wealth over time without effort. For instance, you do not have to monitor your fund growth or tweak your savings strategy from time to time unless you wish to increase the savings amount. Let your money sleep in the account and earn interest to offer an added boost to your salary.
The average monthly balance after you open an account online will be calculated from the 1st to the end of the month by totalling the amount and dividing by the number of days. You can use this formula to plan your finances and spend wisely. It is a good idea to consult bank experts for proper guidance to be able to make the most of your savings’ account.
You can track your savings account through multiple methods. The top bank offers mobile banking, mobile app, internet banking, WhatsApp and Watch banking. You can receive monthly email statements to your registered ID.