Are You Earning Monthly Interest on Your Savings Bank Account?

Posted on Friday, February 2nd, 2024 | By IndusInd Bank

Imagine a life without a savings account. It seems almost impossible, right? After all, how could one manage without this financial tool that simplifies life so much? A savings account is not just for depositing money. It streamlines bill payments, helps save for future goals, keeps your money safe, offers easy access to your money, and even assists in tracking your spending. 

But the list of benefits doesn’t end here. The best thing about savings accounts is that they earn interest. This feature turns your account into a tool that actively works for you and grows your balance over time. But have you ever paused and wondered how often your bank adds this interest? Is it every month or at different times? 

Many overlook this detail while enjoying the other conveniences that savings accounts offer. This piece is not just about the regular benefits you already know. It’s about understanding an aspect that could be silently boosting your financial health. 

Timing of Savings Account Interest Credit 

Following the Reserve Bank of India (RBI) regulations, banks calculate interest on the closing balance daily. This method gives a more precise picture of your savings. However, the frequency of interest credit varies among banks. While some offer interest credit on a half-yearly basis, others do so quarterly or monthly. This timing difference can impact the overall growth of your savings.  

Also, the interest rate of your savings account depends on two things. First, how much balance your account holds and second, the interest rate your bank offers. 

How to Calculate Savings Account Interest Rate? 

A savings account interest calculator can be useful to figure out how much interest your bank account balance can earn. This tool needs just two details: your current savings balance and the interest rate you are being offered. Put this information and tap on the “Calculate” button. Within a few seconds, the tool will give an idea of the interest you can expect to get. 

The many benefits that come with using a savings account interest calculator are: 

You get faster results: The calculator instantly displays how much interest your savings can earn, thus, helping you make quick financial decisions. 

• It offers accuracy: The calculations are more precise and reliable than manual computations. 
• No cost applicable: The tool is available online for free. Thus, more and more users can make use of it to understand their bank rates and savings options. 
• Budget wisely: With information on estimated earnings, you can plan your budget in a better way. 
• Universal access: Use this tool on various devices and get financial insights anytime, anywhere. 
• Get motivated to save more: When you see how much you can earn through interest, you may be inspired to save more. 
• Customise the values: You can input various interest rates or saving amounts. This lets you experiment with multiple scenarios and choose the best savings bank interest rate for optimum growth. 

Final thought 

In India, different banks follow different interest payment policies. Some offer monthly interest while, others go for quarterly or half-yearly interest payouts. This difference can influence the growth of your savings over time. Hence, it is advisable to remain updated about your bank’s interest payment schedule. 

Selecting a bank that offers a competitive savings account interest rate is equally important. IndusInd Bank offers best-in-class interest rates on savings accounts and that means more growth on your deposits. 

With IndusInd Bank, you get easy online access, low fees, good customer support, customised account numbers, family banking, and premium digital banking services. Special perks like cashback, discounts, and rewards better your banking experience even more. 

So, what’s stopping you from grabbing these advantages? Apply for an IndusInd Bank Savings Account today! 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.