What is the interest on a savings account?

Answer 1

The financial institution (bank or credit union) will publish their interest *rates*, and you can look for these rates in the branch, online, or if you giv

call theiir customer service line. Really the question should be refined, because if you are talking about how much interest you are going to earn in a specific savings account given a fixed amount initial deposit, with interest compounding over time, then it depends on initial amount. There's a formula printed somewhere, I'm sure, but say you deposit $1000 and leave it, earn 1% interest. At the end of 1mo. you'd have $1010. Then at the end of the second month, you'd now earn 1% interest not on $1000, but on $1010, so your balance should then become something around $1020 by month 2. Interest rates being paid to savings accounts are incredibly low right now (in fact, aside from a few specialty banks, you'll be lucky to get 1%), but in years past, 5-6 or even 10% wasn't uncommon (though you'd have to go a while back for that!). But in general, that's how interest/compounded interest works. You'll probably want to rephrase your question because noone knows for sure what you mean, so we're making educated guesses, but that's pretty much it--it boils down to either 'ask the bank' or make the calculations when you know how much you have in the bank, whether you'll be using the cash or how much you can keep at the bare minimum in the acct each month, etc. If we wanted to put you on blast, we coulda said 'you ain't earnin' no interest cause you gotta leave some funds up in that savings account before they pay you any interest, instead of taking it out to buy (TVs, new cars, crack, other consumer items) and overdrawing yr account so you wind up paying *them* interest!

Answer 2

The interest for the money maintained in your saving account is usually calculated as follows:

Minimum balance maintained between the 10th and the 30th of that calendar month.

for eg:

A/c balance as of 1-Jan-09 = 2000

A/c balance as of 10-Jan-09 = 2500

A/c balance as of 15-Jan-09 = 4000

A/c balance as of 20-Jan-09 = 2000

A/c balance as of 30-Jan-09 = 2500

Now the amount considered for calculation of interest in your savings account would be Rs. 2000/-

Answer 3

A Savings Bank Account is the basic type of bank account where customers can park or save their surplus cash. The money in the account is extremely liquid and can be withdrawn by the customer anytime they want. As a result, the interest rate provided by the banks on such accounts is also very less. Banks may also give you cheque books and ATM/Debit cards to operate your bank account.

In India the savings account interest rate is 4%. In developed nations like USA or Singapore, the interest on savings account is less than 1% per annum.

Answer 4

4% is the minimum interest rate that is offered on Savings bank accounts in India. All banks have to offer at least 4% because this is mandated by the RBI. Also, the RBI recently de-regulated the savings interest rate which means, banks can offer higher interest rates if they want. Some banks like Yes Bank and Kotak Bank have gone ahead and offered higher interest rates (6% or more) to attract new customers.