1. What is Bandhan Bank Saving Account Interest Calculation?

The Bandhan Bank saving account interest calculation determines the monthly interest earned on your savings based on your average balance and the applicable annual interest rate. Bandhan Bank offers up to 7.75% interest for balances above Rs 25 Crore.

2. How Does the Calculator Work?

The calculator uses the interest formula:

Where:

• \( Average\ Balance \) — Monthly average balance in INR
• \( r \) — Annual interest rate in percentage

Explanation: The formula calculates monthly interest by converting the annual rate to a monthly rate and applying it to the average balance.

3. Importance of Interest Calculation

Details: Accurate interest calculation helps customers understand their potential earnings, plan their finances, and compare different saving account options to maximize returns.

4. Using the Calculator

Tips: Enter your monthly average balance in INR and the annual interest rate in percentage. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is the current interest rate for Bandhan Bank saving accounts?
A: Bandhan Bank offers up to 7.75% interest for balances above Rs 25 Crore, with varying rates for different balance tiers.

Q2: How is monthly average balance calculated?
A: Monthly average balance is calculated by summing the closing balance of each day and dividing by the number of days in the month.

Q3: When is interest credited to the account?
A: Interest is typically credited quarterly or monthly, depending on the bank's policy.

Q4: Are there any taxes on saving account interest?
A: Yes, interest earned on saving accounts is taxable under Income Tax Act, subject to applicable exemptions and deductions.

Q5: Does Bandhan Bank offer different interest rates for different balance amounts?
A: Yes, Bandhan Bank has a tiered interest rate structure where higher balances typically earn higher interest rates.