Savings Interest Calculator
Calculate interest earned on your savings account balance. Find out how much your idle savings are actually generating for you.
Maturity Value
โน1.02 L
Total Invested
โน1.00 L
Est. Returns
โน1,678
Wealth Gain
1.7%
Breakdown
Invested: โน1.00 L (98%)
Returns: โน1,678 (2%)
๐ Interactive Growth Analysis
Invested vs Returns
Wealth Growth Over Time
Investment Scenario Comparison
| Metric | Your plan | +2% Returns (6.0%) | +5 Years (5yr) |
|---|---|---|---|
| Total Invested | โน1.00 L | โน1.00 L | โน1.00 L |
| Maturity Value | โน1.02 L | โน1.03 L โ โน847 | โน1.24 L โ โน22,470 |
| Est. Returns | โน1,678 | โน2,525 | โน24,148 |
๐ก How Savings Account Interest Works in India
A savings account interest rate in India typically ranges from 2.5% to 7% per annum, depending on the bank and your balance. Most private sector and public sector banks in India calculate savings account interest on the daily closing balance method โ meaning interest accrues every day based on your end-of-day balance, even though it is credited to your account quarterly (March, June, September, December).
Understanding how your savings account earns interest helps you make smarter decisions. Keeping โน1 lakh in a regular savings account at 3.5% earns only โน3,500/year โ which barely beats inflation on an after-tax basis. Sweeping excess savings into FDs, liquid funds, or arbitrage funds can meaningfully improve your short-term money returns without adding significant risk.
Where:
- P = Account balance / principal
- r = Annual interest rate (%)
- t = Time period in years
๐ Worked Example
โน3,00,000 in savings at 4% for 1 year
Interest = 3,00,000 ร 4 ร 1 / 100= โน12,000 per year (โน1,000/month)