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Savings Accounts to Yield More

For the benefit of the customer, now the interest will be calculated ona daily basis

Bowing to the will of banks customers, in the latest credit policy, Reserve Bank of India (RBI) has proposed to overhaul the way interest is paid to customers in savings accounts.

Currently, the interest for your savings bank accounts is calculated on the minimum balances held in the account between 10th day to the last day of each month.

With a huge number of customer complaints pressurising them, banks approached the RBI for a change in this procedure. The matter was subsequently, referred to the Indian Banking Association (IBA), which recommended that payment of interest rate be done on a daily basis between the first and last day of the month.

Though RBI has agreed to this proposal in principle, it will not be implemented before April 1, 2010 as computerization of many banks' branches is still not quite complete.

Though it is a pro-saver move, still one has to wait till 2010 to see in what form this gets implemented.