With effect from April 1, 2010, the interest for all INR denominated Savings Accounts will be calculated on the daily closing balances maintained in the Account. The interest will be calculated @ 4.0% per annum instead of 3.5% per annum with effect from May 3, 2011. Interest so calculated is rounded off to the nearest rupee; i.e., fractions of 50 paise and above shall be rounded off to the next higher rupee and fraction of less than 50 paise shall be ignored.
Prior to March 31, 2016 interest was paid half-yearly in June and December. With effect from March 31, 2016 interest will be paid quarterly.
There will be no interest paid for NRE and NRO non interest bearing Accounts.