Savings account interest is calculated based on your daily balance and paid periodically by the bank.
Banks calculate interest on the balance you maintain each day.
This is called the daily balance method.
If your account balance is ₹10,000 and interest rate is 4% per year:
Daily interest = ₹10,000 × 4% ÷ 365
Interest is added periodically (monthly or quarterly).
Interest = Daily Balance × Interest Rate ÷ 365
Learn FD: What is Fixed Deposit
Understanding interest helps in better financial planning.
Learn here: How Bank Interest Works
Usually quarterly, but some banks pay monthly.
Generally between 2.5% to 6% in India.
No, banks can change it.
Yes, if balance is maintained.