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
₹1.02 L
Total Invested
₹1.00 L
Est. Returns
₹1,678
Wealth Gain
1.7%
Breakdown
Invested: ₹1.00 L (98%)
Returns: ₹1,678 (2%)
📊 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 | ₹1.00 L | ₹1.00 L | ₹1.00 L |
| Maturity Value | ₹1.02 L | ₹1.03 L ↑ ₹847 | ₹1.24 L ↑ ₹22,470 |
| Est. Returns | ₹1,678 | ₹2,525 | ₹24,148 |
💡 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 — 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 ₹1 lakh in a regular savings account at 3.5% earns only ₹3,500/year — 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
📝 Worked Example
₹3,00,000 in savings at 4% for 1 year
Interest = 3,00,000 × 4 × 1 / 100= ₹12,000 per year (₹1,000/month)