1. What is SBI Savings Account Interest Calculation?

The SBI (State Bank of India) savings account interest is calculated based on daily closing balances in the account. The interest is credited to the account quarterly and helps account holders grow their savings over time.

2. How Does the Calculator Work?

The calculator uses the SBI interest calculation formula:

Where:

• \( \sum(daily\ balance) \) — Sum of daily closing balances
• \( r \) — Annual interest rate (percentage)
• \( 365 \) — Number of days in a year

Explanation: The formula calculates interest based on the product of the sum of daily balances and the daily interest rate derived from the annual rate.

3. Importance of Interest Calculation

Details: Understanding how interest is calculated helps account holders maximize their savings returns and make informed financial decisions about their banking products.

4. Using the Calculator

Tips: Enter the daily account balance in INR, number of days the balance was maintained, and the annual interest rate percentage. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often is interest credited in SBI savings accounts?
A: Interest is credited quarterly on the last day of March, June, September, and December.

Q2: Is the interest earned taxable?
A: Yes, interest earned on savings accounts is taxable under the Income Tax Act, 1961, and is subject to TDS if it exceeds certain limits.

Q3: What is the current interest rate for SBI savings accounts?
A: The interest rate may vary. Please check the latest rates on the official SBI website or at your nearest branch.

Q4: How is interest calculated if the balance varies daily?
A: For varying balances, interest is calculated on each day's closing balance, and the total interest is the sum of daily interest calculations.

Q5: Are there any minimum balance requirements?
A: Yes, SBI savings accounts typically have minimum balance requirements that vary by account type. Failure to maintain may attract penalties.