Private sector lender RBL Bank on Friday revised the interest rates on its savings accounts on daily balance by 15 bps to 25 bps. According to the Bank's official website, the new interest rates will be effective from October 21, 2022. The interest will be calculated and accrued daily based on the end of day balance in the account.
The bank has also noted its customer that with effect from April 1, 2016, the periodicity of payment of interest on the savings bank account has been changed to quarterly. The interest will be paid or credited to the customer's account on quarterly basis on June 30, September 30, December 31 and March 31 every year.
The applicable interest rate with effect from October 21, 2022 upto Rs 1 lakh is 4.25% p.a. This is applicable to entire balance. If any bank account has a daily balance of above 1 lakh to upto upto Rs. 10 lakh, the rate of interest (p.a.) w.e.f. October 21, 2022 will be 5.50%. Here is a table of revised rate of interest that the bank is offering.
Savings Interest Rate Calculation
The interest in the Savings Account up to Rs. 1 Lakh is calculated at 4.25% p.a. If the daily balance in the account on day 1 is Rs. 85,000, then the interest rate will be calculated 4.25% for the entire balance - (e.g. 85,000 x 4.25% / 365).
If the daily balance in the account on day 2 is Rs. 1,85,000, then the interest rate upto Rs. 1 Lakh will be calculated at 4.25% p.a. For remaining balances, Interest Rate will be calculated at 5.50%. The calculation will look like: (1,00,000 x 4.25% /365) + (85,000 x 5.50% /365).
RBL Bank, which was formerly known as Ratnakar Bank, is an Indian private sector bank. The bank was founded in 1943 and has its headquarters in Mumbai. The bank offers services across six verticals like corporate and institutional banking, commercial banking, branch and business banking, retail assets, development banking and financial inclusion, treasury and financial market operations.
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