It calculates how much interest can be earned on your Savings in Saving Bank Account. Now a days many banks are offering different interest rates against minimum of 4% in their saving accounts.
Your Savings Account now can be your an Investment Account, where Interest income earned may be little higher with following point of attention and proper planning in withdrawal /deposits
Savings Bank accounts holders are hereby informed that in accordance to the RBI circular No.DBOD.No.Dir.BC 128/13.3.00/2008-09 dated April 24, 2009; methodology of computation and periodicity of interest payment on Savings Bank Accounts changed and interest on Savings Bank Accounts will be calculated on a daily product basis with effect from April 1, 2010.
(Before to this interest on savings bank accounts was calculated on the minimum balances held in the accounts during the period from the 10th day to the last day of each calendar month.)
Some of the Banks have now started crediting interest in savings bank account on monthly basis from April, 2016 against the existing half yearly basis.
A deduction of upto Rs. 10,000 (U/S 80 TTA of Income Tax Act) is allowable for interest earned from saving bank accounts.
Avoid to withdraw a day before holiday OR not more than the needs a day before holiday you will loose interest on this amount not only for one day but in addition to the number of holidays. And deposit the amount / cheque to your saving account immediately when it is received to start earning interest on idle amount in any shape (cash/cheque)
Use Debit card for your daily needs it help to curtail down your excess withdrawal from your account.
Use Credit Card card for online bill payment instead of using net-banking or debit card or cash payment. Please do remember to pay the credit card dues before the 'Payment Due Date' of credit card in full to avoid any charges be levied in your card. The use of credit card will help you to retain this much amount in your saving a/c to earn interest till the period of 'Payment Due Date' of credit card (It may be more than 30 days as per the billing cycle date of your credit card). Click here for Credit Card Usage Guide & Know the Terms Used in Credit Card Monthly Statement