Savings, is it?
Internet has surely made us outward looking, but if you give it a deep thought, you would agree that it has actually taken over our thought process. You may wonder how many times the topic of discussion in the close boundaries of your home would pop-up on some pages over the net – no relation to you, whatsoever. This morning we were discussing about the way banks calculate the interest on the savings accounts and should we religiously track what we receive in return of all our hard-earned savings. Not many hours passed before which I read an article on a news website about savings account’s so-called savings.
RBI recently suggested that interest on savings accounts (which is 3.5%) should be calculated on the daily basis rather than the current-system-loop-hole-practice that banks follow. What would this mean for the account holders is that they would get higher returns on there money compared to what they get today. That is, as of today, banks give interest on the lowest amount that the holder has b/w 10th and last of the month. So even if you are keeping millions in your account, you would receive interest only on the lowest carrying amount during the period. Once the new directive is in place (may be during 2010), you can rest assured that you reap benefit of that extra sum in your savings account.
So more the number of days you hold those million dollars in your savings account, more interest you will fetch from your bank. Rest assured, this will transform the way consumers use the savings account; they might just take them as a safe haven for there hard earned money. Well! banks may just have to find some other loop holes to keep there system alive and kicking.
