1. What is ICICI Bank Interest Calculation?

The ICICI Bank interest calculation for savings accounts determines the monthly interest earned based on the average monthly balance and the annual interest rate. This helps account holders understand their potential earnings.

2. How Does the Calculator Work?

The calculator uses the ICICI Bank 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: Understanding how interest is calculated helps account holders maximize their savings, compare different banking products, and plan their finances effectively.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How often is interest credited in ICICI savings accounts?
A: Interest is typically credited quarterly to savings accounts.

Q2: What is the current interest rate for ICICI savings accounts?
A: Interest rates may vary. Please check ICICI Bank's official website for current rates.

Q3: How is average monthly balance calculated?
A: It's calculated by adding the closing balance of each day and dividing by the number of days in the month.

Q4: Are there different interest rates for different balance tiers?
A: Yes, many banks including ICICI offer tiered interest rates based on account balance.

Q5: Is the calculated interest subject to taxation?
A: Yes, interest earned from savings accounts is taxable income under Indian tax laws.