Interest Calculation On Savings Bank Account

From 1st April 2010, as per RBI’s guidelines, all savings bank accounts will yield daily interest for the balance kept in the account at the end of the day even though the applicable rate is 3.5 % , the banks had their own rule of calculating the balances for interest calculation and it makes an effective rate which might vary between 2.8-2.95 %, since most of the savings account shows higher balance in the first week, which banks will not consider for interest calculation . Now with this new rule, the banks will calculate the balance (principal) for interest daily...