With the implementation of various online platforms, calculating or estimating interest rates have become easier and more reliable. The process is fast, accurate and doesn’t require any additional steps. Calculation of interest by hand can be wrong and time-consuming, but the savings account interest calculator on online platforms helps to instantly calculate interest rates. The interest amount earned by the consumer is credited every quarter in India. In this article, we will understand how the savings account interest calculator works and the ways to operate it. 

Let’s get started.

Working of the Savings Account Interest Calculator

The savings account interest calculator is a free online tool made available for consumers to calculate an estimate of the interest rate that they can earn from their savings accounts. The calculator asks for some bank details that a consumer needs to insert. After that, the estimated interest amount is shown by the savings account interest calculator. The interest amount is calculated based on the daily bank balance. 

If money is withdrawn, then the lowest balance will determine how much interest should be given. And if money is credited,then the balance before the money is credited will be taken to calculate the interest amount and the new balance will be calculated the next day. This information is important to know before calculating the interest amount as misconceptions may arise in the minds of the account holders about their savings interest rate. 

How to use a Savings Account Interest Calculator?

A savings account interest calculator is easy to use and everyone can have access to it by phone or computer. A person will be able to calculate the interest rate anytime and anywhere based on their convenience. The following steps will show how a savings account interest calculator is used: 




  • After opening the savings calculator, it will ask for the current bank balance of your account. Enter the correct amount in the required field and press enter. 
  • Insert the interest rate that your Bank provides for savings accounts. It has to be the annual interest rate.  
  • When asked, mention the total number of days for which you want to calculate the interest amount. This will help in giving an estimated interest amount of the number of days entered in the calculator. 
  • After the necessary details are entered into the savings calculator, the interest amount will be reflected on the page in the “Interest Amount” field. 

Importance of Savings Accounts Interest Calculator

There are various benefits of using a savings account interest calculator:

  • It helps in deciding which bank to select before opening a savings account.
  • It doesn’t require a lot of information to calculate the interest amount. Basic information like the current balance, interest rate provided by the bank and the number of days for which the interest needs to be calculated will be needed.
  • It helps in proper financial planning.
  • It gives the liberty to invest for everyone and choose the right bank. 
  • It helps you to make better decisions in case of purchases as it calculates the interest rate after the amount is debited from the bank account. 

Conclusion

Using a savings account interest calculator is an effective tool to help you make the most of your savings. With the right information and the right calculations, you can easily track and monitor your progress while making sure that your money works for you in the best way possible. Start taking charge of your finances today by investing in a savings account interest calculator!