how is interest calculated in sbi?

India
May 4, 2011 9:40am CST
if i have a bank account in sbi,how will the interest rates be calculated like if i have 10000rs they calculate for the highest amount or for the no of days in which i have the highest balance?how is the interest calculated?
3 responses
vanny
@vandana7 (102698)
• India
6 May 11
Okies.. 3.5 percent and now 4 percent, simple interest, not compound. ok?
vanny
@vandana7 (102698)
• India
6 May 11
PM me and may be I will send you a spreadsheet through which you can work it on regular basis, i.e., if you've not figured it out already. :)
Just an Ordinary Owl?
@owlwings (43897)
• Cambridge, England
4 May 11
It usually depends on the rate of interest and the balance at every day if the Interest is calculated daily (as it generally is). If the Interest rate is 4% per annum, then the interest is calculated on any balance you hold at 4/365% per day. If your balance is Rs 10,000 for a year, you would earn Rs 400. If you only kept the money there for a day, you would earn a little over 1 rupee.
vanny
@vandana7 (102698)
• India
6 May 11
I agree..but the rate of interest was 3.5 percent pa., till a couple of days ago. And it is calculated on a daily basis.
Always smiling
@allknowing (153544)
• India
4 May 11
If you have kept it in a savings account then the interest is minimal and it reduces as you withdraw funds. But if you have kept it as a fixed deposit, these days the interest rate is around 9.25 per cent and this rate will be the same for the period or number of years that you have opted to keep this amount in the bank.