Savings Account Interest Calculator

Indian banks calculate interest daily based on the closing balance of your savings account. The daily interest is summed and credited quarterly to your account.

The daily balance method calculates interest on your account closing balance at the end of each day. This ensures you earn returns on the exact amount held daily rather than the minimum monthly balance.

Yes. It is taxable under "Income from Other Sources". However, you can claim tax deductions up to ₹10,000 under Section 80TTA (or ₹50,000 for senior citizens under Section 80TTB).

Nominal interest rate is the stated annual rate (e.g. 3.5%). Effective Annual Yield (EAY) accounts for compounding frequency (e.g. quarterly credits), reflecting the actual interest earned-on-interest.

Most commercial banks in India credit savings account interest quarterly, on the last day of June, September, December, and March. Some digital banks may credit interest monthly.

No, banks do not deduct Tax Deducted at Source (TDS) on savings account interest payments, regardless of the interest amount. However, the interest remains taxable in your hands.

No. Section 80TTA deduction is strictly applicable only to interest earned on savings accounts (held in banks, post offices, or cooperative banks). FD interest does not qualify.

Public and private sector banks offer nominal rates between 2.7% and 3.5% p.a. Some smaller private banks and payments banks offer higher rates of 4.0% to 7.0% p.a.

No, there is no legal limit to the number of savings bank accounts an individual can hold, provided they complete KYC requirements and maintain minimum balance rules for each.

It varies by bank and account type. Metro branches typically require ₹5,000 to ₹10,000 average monthly balance, semi-urban requires ₹2,500, while basic savings (BSBDA) require zero balance.