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Savings Account Interest Calculator

Pick your bank and enter your balance to see the interest you will earn, how much is credited each quarter or month, the tax on it, and how much more the best-paying bank would give you on the same balance.

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Calculator and results

An average balance of ₹1,00,000 in a SBI savings account earns ₹2,524 over 1 year, an effective 2.52% a year with interest credited quarterly. RBL Bank pays the most on this balance: ₹518 more.

2.5% on any balance

Balance

₹

Total interest

₹2,524

over 1 year

Effective yield

2.52%

a year, on the average balance

Taxable interest

₹2,524

no 80TTA/80TTB in the new regime

At RBL Bank

₹3,042

₹518 more than State Bank of India

Tax on this interest

Savings interest is taxable at your slab rate. Banks do not deduct TDS on savings account interest, so declare it in your return. The new regime does not allow the 80TTA or 80TTB deduction.

Interest credited quarterly
Interest credited quarterly
PeriodInterest creditedBalance after credit
Months 1-3₹625₹1,00,625
Months 4-6₹629₹1,01,254
Months 7-9₹633₹1,01,887
Months 10-12₹637₹1,02,524

Top 5 banks for this balance

  1. 1.₹3,042
  2. 2.₹2,786
  3. 3.₹2,779
  4. 4.₹2,625
  5. 5.₹2,566

Compare all banks →

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Savings interest

₹2,524

2.52%
What it is:
A calculator for the interest a savings account in an Indian bank earns, using that bank's published slab rates.
What it calculates:
Total interest, interest credited each period, effective annual yield, taxable interest after 80TTA or 80TTB, and the best-paying bank for the same balance.

Key Assumptions

  • Each month's balance is constant and a month is one twelfth of a year.
  • Interest compounds only when it is credited.
  • Rates stay as published for the whole period.
  • The 80TTA and 80TTB limits apply per financial year, old regime only.

How does the Savings Account Interest Calculator work?

Banks calculate savings interest on the balance at the end of each day and credit it to your account at least every quarter, as the RBI requires; some credit it monthly. Interest only compounds when it is credited, so a monthly credit earns slightly more than a quarterly one at the same rate.

Many banks pay different rates on different parts of your balance. Some apply each rate to its own slice (the first ₹1 lakh at one rate, the amount above it at a higher rate); others pay the whole balance the rate of the band it falls in. The calculator uses whichever style your bank states.

If your balance changes through the year, switch to month by month and enter each month's average balance. Interest the bank credits is added to the following months for you.

Bank rates are read from each bank's own website and dated. The newest check was on 21 October 2026. Rates change often, so confirm with your bank.

Savings Account Interest Calculator formula

Interest for a month = annual interest on that month's balance ÷ 12; credited interest is added to the balance at each credit date

Tiered
= each part of the balance earns its own band's rate
Whole balance
= the whole balance earns the rate of the band it falls in
Credit
= monthly or quarterly, as the bank does; interest compounds only at a credit
Effective yield
= total interest ÷ average balance, per year

A month is treated as one twelfth of a year and each month's balance as constant. With a steady balance this matches the bank's daily-product method to within a rupee or two.

Savings Account Interest Calculator: worked example

₹2,00,000 kept for a year in an SBI savings account

Average balance
₹2,00,000
Interest credited
quarterly
Total interest
₹5,047
Effective yield
2.52%
Section 80TTA deduction (old regime)
₹5,047
Taxable interest
₹0

Savings Account Interest Calculator: frequently asked questions

How is savings account interest calculated in India?
On the balance at the end of each day (the daily product method), at the annual rate for your balance, and credited to the account at least once a quarter. Some banks credit it monthly.
Is savings account interest taxable?
Yes, at your income tax slab rate. Banks do not deduct TDS on savings account interest, so you must declare it in your return. In the old regime, Section 80TTA deducts up to ₹10,000 a year of savings interest for people below 60, and Section 80TTB deducts up to ₹50,000 a year of interest on all deposits for resident senior citizens. Neither is available in the new regime.
What is the difference between tiered and whole-balance slab rates?
With tiered (or differential) rates, only the part of your balance above a threshold earns the higher rate. With whole-balance rates, once your balance crosses the threshold the entire balance earns the higher rate. The same balance can earn noticeably different interest under the two styles.
Why does the bank's quarterly credit differ slightly from this result?
Banks use your exact daily balances and the actual number of days in each quarter. This calculator uses a monthly average balance and treats each month as a twelfth of a year, so small differences of a rupee or two are normal.
Is my money in a savings account insured?
Deposits in banks, including small finance and payments banks, are insured by the DICGC up to ₹5 lakh per depositor per bank, covering principal and interest across all your accounts in that bank.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated