THE savings account will yield 30 to 40 basis points more to the account holder from Thursday with the banks shifting to the new method for calculating interest on savings deposits.
Following the Reserve Bank of India guidelines, the banks would be required to calculate interest on savings deposits on a daily basis beginning April 1.
The interest rate on savings accounts is calculated on the minimum balance held from the 10th day to the last day of each month at present. Savings deposit yields an interest rate of 3.5 per cent and is credited to the account on a half yearly-basis -in March and September.
Payment of interest accumulated even with the daily calculation would be as per the existing practice of withdrawal at the end of six months.
