1. What is ICICI Savings Account Interest Calculation?

The ICICI savings account interest calculation determines the monthly interest earned on your average balance based on the bank's annual interest rate. Interest is calculated on daily balances and paid monthly.

2. How Does the Calculator Work?

The calculator uses the ICICI interest formula:

Where:

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

Explanation: The formula converts the annual interest rate to a monthly rate and applies it to your average balance to calculate monthly interest earnings.

3. Importance of Interest Calculation

Details: Understanding how interest is calculated helps you maximize your savings returns, compare different account options, and plan your finances effectively.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How often is interest paid on ICICI savings accounts?
A: Interest is typically calculated on daily balances and paid monthly to your account.

Q2: What is the current interest rate for ICICI savings accounts?
A: Interest rates vary based on account type and balance. Check ICICI's official website for current rates, which typically range from 3-4% annually.

Q3: Is interest taxable?
A: Yes, interest earned on savings accounts is taxable under Income Tax laws, subject to applicable exemptions.

Q4: How is average balance calculated?
A: Average balance is typically calculated as the sum of daily closing balances divided by the number of days in the month.

Q5: Are there minimum balance requirements?
A: Yes, ICICI has minimum balance requirements that vary by account type. Failure to maintain may attract penalties.