1. What is SBI Savings Account Interest Calculation?

The SBI savings account interest calculation determines the interest earned on your savings account based on daily closing balances. The interest is calculated using the formula: Interest = sum of daily balances × (annual interest rate/100) ÷ 365.

2. How Does the Calculator Work?

The calculator uses the SBI interest formula:

Where:

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

Explanation: The interest is calculated on the daily closing balance of your savings account. The sum of these daily balances is multiplied by the daily interest rate (annual rate divided by 365 days).

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 daily closing balances separated by commas or new lines, 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 to SBI savings accounts, typically on the last day of March, June, September, and December.

Q2: Is the interest earned on savings accounts taxable?
A: Yes, interest earned on savings accounts is taxable under the Income Tax Act, 1961, and is added to your total income for the financial year.

Q3: What is the current SBI savings account interest rate?
A: The interest rate varies and is subject to change by SBI. Please check the official SBI website or visit your branch for current rates.

Q4: How is interest calculated if the account has multiple transactions?
A: Interest is calculated on the daily closing balance, regardless of the number of transactions during the day.

Q5: Are there any minimum balance requirements for interest calculation?
A: Yes, SBI may have minimum balance requirements for savings accounts. Interest is typically calculated only on balances above any specified minimum requirements.