Recently I covered this topic of daily interest calculation on our bank balances, but I was under the impression that this interest will be credited to our accounts on a six monthly basis, but today I got some interest amount for the month of March 2010 and I am very surprised. Do you guys have any clue on how does this work?
Also, the interest amount was credited only in my ICICI Bank account but the other Banks which I have access to (like Citibank and HDFC Bank) have not yet released any amount. I wonder how this works!
Also the new rule is applicable from April 2010 then why am I getting monthly interest for the month of March 2010? Not that am complaining 🙂 But would still like to know more . Please pour in your thoughts.
Just for info the calculation works in this fashion –
Daily interest = Amount (Daily balance)* Interest (3.5/100)/ Days in the year
After some research I came to realize that this interest has been shelled out for March in April itself as from 1st April 2010 the calculation will be different and the payment would be six monthly 🙂