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Division of interest accounting Form: What You Should Know

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Video instructions and help with filling out and completing Division of interest accounting

Instructions and Help about Division of interest accounting

Hey what is going on everybody welcome to another video in which we are going to see savings account basics you need to know and how interest is calculated on the money present in your savings account so let's get started with this video most of you undereyour savings account mostly because of low interest rate that they prbut if you see apart from the interest rate there are many other plus points of savings accounts which are mostly ignored before going to the pros and cons of savings accounts let's see what exactly it is a savings account is an interest-bearing deposit account held at a bank or any other financial institution that provides a modest interest rate you can open a savings account in any bank with the help of your identity and address proof with couple of your passport size photographs some of the banks or financial institution we want you to maintain a certain average monthly balance in your account they might also limit the number of withdrawals during a month coming to the interest part most of the savings accounts in India provides an annual interest rate of 4% that means one-day interest will be 4% divided by 365 days which comes to around .01 1% remember guys interest on your savings account is calculated on daily basis using the lowest balance for that particular day and most of the bank's credit this interest on at the end of the quarter so you can say that compounding is done quarterly in case of savings accounts now let's see interest calculation with the help of an example if not you have rupees 50000 in his savings accounts then the interest that he will be earning in one day considering .01 1% interest rate in a day...