A savings account is the most common way to keep your money safe while earning some interest. But the big question is—how much interest are you actually making on your balance? Understanding how banks calculate savings account interest can help you make smarter financial choices and grow your wealth more effectively.
For instance, while savings accounts offer basic returns, a Bajaj Finance Fixed Deposit can give you assured growth with rates up to 7.30% p.a., making it a stronger long-term option. Open FD.
Savings account interest
Savings accounts pay interest on the money you deposit. The interest is typically calculated daily but credited monthly or quarterly. There are two main types:
- Simple Interest: Calculated only on your original deposit (principal).
- Compound Interest: Calculated on your deposit plus accumulated interest, helping your money grow faster.
Unlike savings accounts where rates fluctuate, a Bajaj Finance FD locks in your returns for the entire tenure, shielding you from interest rate changes. Check latest rates.