Higher Earnings thro' Savings Bank Interest

Whenever we see our account statement for the quarterly interest paid, the amount would be paltry and we think why is the amount very negligible inspite of having considerable amount deposited in the Savings bank account....

But now the Reserve Bank Of India has changed the methodology of interest calculation for Savings bank (SB) account.

The hard earned money in SB account will earn double interest from April 1, 2010.

Lets see how it works:

Until 31st March 2010, the interest was calculated for the minimum balance available in SB account from 10th to 31st of the month @ 3.5% p.a.

But now , from 1st April 2010 the interest will be paid for daily balance available in SB account @ 3.5% p.a.

Effectively giving double returns....

Illustration:

As per earlier calculations: Minimum balance between 10th & 31st is Rs 10000, The interest earned for that month would be Rs 30.

But with the new calculation method, The Interest earned would be Rs 51....

Thus even Idle money works for you !!!