Calculating Interest on Savings Account: Here’s Everything You Should Know

A savings account is one simple approach to save and grow your money. The deposit account has many user-friendly features, and one can open a savings account online with a bank to avail of the benefits.

One significant benefit of a savings account is the interest earned on funds held in the account. Most banks are permitted to set their rates following RBI guidelines. However, most individuals are confused and do not know how to calculate interest on a savings account.

This article will discuss how the interest is calculated on the savings account.

How to Calculate Interest on a Savings Account

The interest on savings is computed based on the daily outstanding balance, as per the Reserve Bank of India guidelines in 2010. In other words, an individual receives interest on the total balance in his account at the end of each day. The formula used to calculate the interest on a savings account is as follows:

Interest on savings account= Daily balance*Rate of interest* (No. of days/365)

Let’s look at an example to assist you to grasp it better.

On Day 1, suppose Mr Deepak has Rs.1 lakh in his account. After seven days, he withdraws Rs.50,000. On the 14th day, he deposits Rs.30,000. There are no further transactions after that. Let’s assume the interest rate is 5%. Now, look at how the interest rate is calculated for March month.

Date Opening Balance Deposit Withdrawal Outstanding


100,000 100,000


100,000 50,000 50,000


50,000 30,000 80,000


80,000 80,000

The interest calculations are as under:

  • The total balance was Rs.100,000 from 01/03/2022 to 06/03/2022. Thus, for seven days, the interest is computed on Rs.100,000, which is:

100,000*5/100*7/365 = Rs. 95.89

  • The remaining balance is Rs.50,000 from 07/03/2022 to 14/03/2022, on which interest will be calculated for seven days period as :

50,000*5/100*7/365 = Rs. 47.95

  • The remaining balance was Rs.80,000 from 14/03/2022 to 31/03/2022. The interest computed for 18 days is as:

80,000*5/100*18/365 = Rs. 197.26

Now, the total interest earned on the savings account at the end of March is:

95.89 + 47.95 + 197.26 = Rs. 341.1

Thus the total interest earned by Mr Deepak for March is Rs. 341.1.

You may also perform the calculations using an online savings account interest calculator. The tool is simple to use and delivers accurate results.

How To Use a Savings Account Interest Calculator?

To use a savings account interest calculator, you need to enter the following details:

  • Type of account you have with a bank
  • The balance sum in your savings account
  • The interest rate offered by the bank

You will also have to decide whether the interest earned is credited monthly, quarterly, semi-annually, or annually. This allows you to calculate the interest rates on your savings account quickly. Notably, the interest rate changes every day and is determined by the amount of money in your account.

Most people utilise savings accounts online to get banking services. However, if properly managed, a savings account might be your first step toward financial security. You can use the account to save money and generate interest on it without any difficulty.

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Top Ways to Reduce Cost of a Heavy Digger

A heavy digger is a helpful piece of machinery that is used for moving earth, excavating, digging, grading, demolition and landscaping. Examples of heavy digger models are the different types of backhoes and excavators, and these are invaluable on any building site. Nonetheless, the machinery is fairly costly and many contractors decide to rent it, rather than purchasing it. However, even after renting, the running costs of heavy diggers are still significant.

Here’s some proven ways to reduce cost of a heavy digger:

1. Shop Around Different Rental Firms

The most effective way of cutting costs is to choose a heavy digger rental firm with affordable fees. While some firms offer heavy diggers that are identical to each other, their rental fees vary. Some firms charge much more than others. Spend some time comparing several firms, prior to selecting one. While you do this, take the following things into account, so that you obtain the most competitive rates:

• Choose a rental service with versatile packages.

• Opt for a firm with various kinds of machinery. If you require a bulldozer and excavator, obtaining them from a single firm would be more cost effective than using a couple of different firms.

• Check that your purchase comes with machine attachments. Possessing attachments like buckets, augers, grading blades and grapples will spare you from searching for these things subsequently. Needless to say, you will have to pay more if you rent these items separately.

Once you have compared your potential suppliers against this criteria, request quotations and opt for the firm that fulfills all your requirements at affordable prices.

2. Obtain a Digger That is Serviced

Think about what would happen if you hired a digger that malfunctioned halfway through your project. You will have to fix it, which will result in extra expenses that greatly exceed the rental price. Prevent this by renting a digger that is serviced. Prior to obtaining the machinery, the plant rental firm should evaluate, service and fix the digger. Throughout the evaluation, you need to be on hand to check that every part is working properly.

Take note of areas like the undercarriage, hydraulic system, attachment system, the controls and the electrical system. Make sure that the fluids are changed. After the machinery is serviced and fixed, you will not incur repair expenses that you aren’t to blame for.

3. Pay for a Good Operator

You might think that an operator is an unnecessary extra cost, however it will mean that you pay less over the long term. Some rental firms allow you to hire machinery with an operator for an extra fee – for instance, £250. Make the most of these offers, because they will cut down the rental costs overall.

A good operator will complete the task quicker than you could have done, particularly if you are not a skilled digger operator yourself. Also, good operators avoid errors that arise from inexperience, and spare you costly downtime. In the event that your operator damages the machinery, you are not liable to pay for it — the plant rental firm will have to cover this cost.

Closing Summary

Plant rental is a vital service in many building and earthmoving projects. Take heed of the above advice, when renting heavy diggers. Get in touch with FGS Plant to discuss your machinery hire requirements. The packages we offer are versatile, and can be customized to your situation. We charge affordable prices and provide free quotations upon request.

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