On Which Date of the Month Do Banks Pay Interest to Their Savings Accounts?

Indian banks credit or pay interests to their savings accounts in 4 quarters starting from 1st April to 31st March. The date is not fixed and varies from bank to bank. However, banks try to credit the earned interest as soon as possible based on the average maintained sum.

Interest
QuarterMonthsCredit Date
First QuarterApril, May, June30th June
Second QuarterJuly, August, September30th September
Third QuarterOctober, November, December31st December
Fourth QuarterJanuary, February, March31st March
Banks may credit the interest income early or late.

Let’s take an example, a savings account holder maintained 1 lack of rupees in the quarter one which starts from 1st April and ends on 30th June while the interest rate is 3.5%.

In this case he’ll receive Rs. 875 as an interest income in the same account. Note that this source of income is taxable in the eyes of law.

As of now, a bank charges 10% TDS (Tax Deduction Source) only when your total interest income cross above Rs. 10,000 in a given year. Since this TDS charges is maintained at branch level, you’ll enjoy another limit in some other branch or bank.

Published by AtulHost

Atul Kumar Pandey is a creative blogger who loves experiments with the latest tech trends like automation, artificial intelligence, data science, cloud computing, edge computing, hardware as well as networking, and the internet of things.

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