1. What is ICICI Savings Account Interest Calculation?

The ICICI savings account interest calculation determines the monthly interest earned on your savings account balance based on the bank's annual interest rate and your average monthly balance.

2. How Does the Calculator Work?

The calculator uses the ICICI interest formula:

Where:

• \( \text{average balance} \) — Monthly average balance in INR
• \( r \) — Annual interest rate (percentage)

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

3. Importance of Interest Calculation

Details: Understanding how interest is calculated helps you maximize your savings returns, compare different banking products, and make informed financial decisions about where to keep your money.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

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

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

Q3: Is the interest earned on savings accounts taxable?
A: Yes, interest earned on savings accounts is taxable income under Indian tax laws.

Q4: How is average monthly balance calculated?
A: Average monthly balance is calculated by adding up all end-of-day balances and dividing by the number of days in the month.

Q5: Are there different interest rates for different balance tiers?
A: Some banks offer tiered interest rates where higher balances earn higher rates. Check ICICI's current rate structure for details.