A quick info byte on the meaning of "Daily Product Basis Interest Calculation"
As we know that the interest is calculated based on the minimum balance held in the account from the 10th of each month to the last day of that month.
So, if a bank customer has Rs 1 lakh in his savings account one day and then Rs 100 another day, the minimum balance taken for calculation of interest in the period would be Rs 100.
But, from April 1, 2010, the interest paid on the savings account will be based on the daily minimum balance. Now even the Rs 1 lakh balance in the savings account will earn the customer interest for the number of days it was in the Savings account.
Based on this process your savings bank account may start earning more interest from 10th April 2010.
4 comments:
It has been there for a year and I did not know about this. Thanks for passing the information.
Though RBI passed the circular a year ago, banks are slowly adopting to it till recently. HSBC adopted this only from this month June 2011 & sent an email notification on this. That's how even I came to know about it !
Correction.. All banks implemented this last year. HSBC sent email notification about increase in the interest rates pay out.
has IOB adopted this if so from what date sir. u r rocking.
saisu
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