Advertising
Advertising

5 Things To Learn About Annual Interest Returns

5 Things To Learn About Annual Interest Returns

Here are 5 things you need to know about annual interest returns:

1. The World Bank Estimate

The World Bank estimates that up to 2014, the penetration of banks in all segments of India increased from 35% in 2010 to 53% in 2014. When the ruling political parties at the centre changed in 2014 and the present government floated its Jan Dhan Yojana Scheme, a further proliferation of savings bank accounts took place. The scheme aimed at financial inclusion for all classes and masses of Indian society – and by January 2015, over 125 million new bank accounts had been opened.

Advertising

The implications for more savings accounts and interest to be earned on them are tremendous. It would appear that savings account holders can keep their idle finds for longer periods of time and earn interest on them, so as to increase the size of the deposit. Today, a majority of nationalised and private Indian banks offer 4% interest on savings deposits. However, people are also choosing other avenues of increasing the size of their savings instead of merely depending on 4% annualised interest rate returns.

2. How the interest used to be calculated before year 2010

Prior to the year 2010, interest on saving accounts were calculated on the basis of the lowest available deposit amount in the savings account. The savings account interest rate was calculated at 4% for the days from the 10th of the month to the final day of that month. The prominent condition on this interest rate calculation was that any money deposited into the account during this month was not considered for the computation, but withdrawals were counted. Thus, one would need to deposit money before the 10th of every month only, to bulk up the deposited amount and thus earn more money by way of the 4% interest.

Advertising

3. How the interest is calculated post 2010

In the year 2010, from April 1 to be precise, the RBI mandated that banks rework their computations for interest on saving accounts. Thus, banks started calculating the interest on a daily account basis. Let us use the example of Rupesh Kumar to illustrate the calculation:

Say Rupesh has an opening balance of Rs 30,000 on the 10th day of the month. On the 15th day, he was paid Rs 40,000 by a client. So the bank calculates interest on the deposit from the 10th to the 15th day. On the 25th of the month, Rupesh makes a prepayment of Rs 50,000 on his home loan. Thus, the bank computes interest on the balance from the 15th to the 25th day. Finally, it calculates the interest on the balance between the 25th day to the final day of the month. This way, every rupee in Rupesh’s account earns interest and there is no need to time money deposits.

Advertising

4. Larger returns on savings bank accounts

After the RBI deregulated the 4% cap on savings account interest rates in India in October 2011, Indian banks were free to impose their preferred interest rates on savings deposits. Today, while most banks have stuck to 4% interest rates, some other banks in India offer up to 6% or even 7% interest on savings accounts.

Naturally, banks are keen to entice customers to open savings bank accounts with them, but they are also encouraging customers to maintain their deposits over a longer spell of time to earn higher interest on them. Premier banking institutions in India are also offering ‘Sweep in/Sweep out’ accounts, which provide the benefits of larger deposits in the form of fixed deposits; these can be liquidated in times of need. These accounts make it possible to earn decent sums of money by way of savings account interest.

Advertising

Now you know more about interest rates. Hopefully this will be able to help you in opening up your own or managing your current one.

Featured photo credit: ih Money Smarts via ihmoneysmarts.org

More by this author

Bhavik Sarkhedi

Founder of Write Right - A Content Marketing Company

5 Effective Ideas To Generate Leads For Your Content 5 Things To Learn About Annual Interest Returns 6 Ways To Convert Your Pursuers To Customers Eight Hacks to Read Body Language 10 Important Truths Every Twenty Something Should Realize

Trending in Entrepreneur

1 How to Start a Successful Business and Increase Your Profits 2 12 Foolproof Tips for Entrepreneurs to Be Successful in a New Venture 3 How to Start an Online Business That Will Grow and Succeed 4 Feel like Giving Up? 16 Way to Help Entrepreneurs Stay Motivated 5 15 Stellar Startup Business Ideas for the Burgeoning Entrepreneur

Read Next

Advertising
Advertising

Last Updated on November 5, 2018

20 Best Places to Work for a Great Career in 2018

20 Best Places to Work for a Great Career in 2018

Looking for a job? There’s no doubt to the fact you will want to work with a company that appreciates you for who you are.

Well, good news. The labor market today is one that has peened up with more opportunities for advancement and personal employee improvement. This is partly due to the fact that a lot of companies have been made to understand the value of their biggest assets: the employees.

To wit, here’s a list of companies- across a wide array of industries- that have been able to develop working environments that are healthy and accommodating to workers.

Take a look at these 20 best place to work for a great career:

1. Salesforce, San Francisco, California,

    Salesforce is in the information technology business and the company ranks highest due to their commitment to learning and innovation. They are ready to try new things and everyone with a new idea is always welcome to share it at the company. The company has also been known to exhibit an exceptional approach to alignment.

    Find out more about careers in Salesforce

    2. Wegmans Food Markets Inc.,Rochester, New York

      Based in Rochester, New York, employees have been known to enjoy a sense of purpose from working here. The company has been able to achieve an optimal level of engagement across all working tiers and they’ve been able to achieve great things together. They even do deliveries.

      Find out more about careers in Wegmans

      3. Ultimate Software, Weston, Florida

        Employees get amazing benefits here but that’s not the only reason why this place is so awesome to work. Whenever there is a need or a death of an Ultipeep or any of other family members, the company shows love and support like no other.

        Find out more about careers in Ultimate Software

        Advertising

        4.The Boston Consulting Group, Inc., Boston, Massachusetts

          Development is at the center of anything that goes on here. The business is about people and employees are the company’s biggest asset. Employees are able to challenge the status and also leave impacts on clients.

          Find out more about careers in The Boston Consulting Group

          5. Edward Jones, St. Louis, Missouri

            Edward Jones is admired for their ability to acknowledge history without being mired down by it. The company builds on a solid foundation but there is also a level of flexibility that allows for innovation.

            Find out more about careers in Edward Jones

            6. Kimpton Hotels and Restaurants, San Francisco, California

              Kimpton is a trendsetter in the hospitality industry. The company always strives to try something different and that perspective is welcomed there at all times. Enjoy the weekends with luxury rooms, conformable mattress, furnished and well dressed service staff. A great opportunity for job seekers.

              Find out more about careers in Kimpton Hotels and Restaurants

              7. Workday, Pleasanton, California

                Newbies will find no issues with feeling welcome and at home here as this has always been a core culture component of the IT giant. Everyone is treated like family and this fosters a sense of oneness.

                Find out more about careers in Workday

                8. Genentech, South San Francisco, California

                Advertising

                  Here, employees are encouraged to be themselves. There is a feeling of care, safety, and acceptance that you get here that you can’t get at many firms. The development of an all-inclusive environment has always been foundational.

                  Find out more about careers in Genetech

                  9. Deloitte, New York, New York

                    Deloitte is one of the biggest professional service providers in the world, noted for their focus on constant learning, development and improvement. They invest in their employees and are concerned about their well being.

                    Find out more about careers in Deloitte

                    10. Baird, Milwaukee, Wisconsin

                      Baird is a financial services provide that is known for adopting a “no asshole policy’ which guides the way people relate with and respect each other, regardless of their position on the company’s hierarchy.

                      Find out more about careers in Baird

                      11. Quicken Loans, Detroit, Michigan

                        At Quicken Loans, the views and opinions of everyone are respected and heard. The organization is revered for the amount of investment they put in their team members and everyone looks for ways to grow and be better.

                        Find out more about careers in Quicken Loans

                        12. Capital One, Mclean, Florida

                          Capital One has adopted a culture that encourages employees to take risks and try new things. They foster a healthy work-life balance and associates are challenged to live better lives.

                          Advertising

                          Find out more about careers in Capital One

                          13. Cooley LLP, Palo Alto, California

                            Cooley LLP is a law firm known for their ability to care about the company culture and being able to develop a working environment that is empowering and fun. Cooley is known to go for the best when it comes to their employees, regardless of the occasion.

                            Find out more about careers in Cooley LLP

                            14. Southern Ohio Medical Center, Portsmouth, Ohio

                              The medical center has been known for their propensity to delegate so much to their employees, thereby providing them with the ability to grow and learn on the job. In the end, you get a workplace that is all-engaging and super fun.

                              Find out more about careers in Southern Ohio Medical Center

                              15. American Express, New York, New York

                                American Express is a firm that celebrates wins, no matter how small. Everyone is made to share the same attitude towards service and the people they are to serve, thereby making people care about what they do.

                                Find out more about careers in American Express

                                16. Adobe Systems Inc., San Jose, California

                                  The culture at Adobe Systems is one that encourages employees to develop their own ideas and get a strong viewpoint. As opposed to encouraging competition, work-life balance is fostered everywhere here.

                                  Find out more about careers in Adobe Systems Inc.

                                  Advertising

                                  17. The Cheesecake Factory Inc., Calabasas, California

                                    The Cheesecake Factory rewards dedication and hard work. Promotions come pretty easy, and there is always space for guidance to develop your experience and skills.

                                    Find out more about careers in The Cheesecake Factory Inc.

                                    18. Sap America, Newtown Square, Pennsylvania

                                      If you’re looking for a new career path, SAP might be the best bet for you. The company is adept at recognizing value and transferable skills. And you can always look for a new path while maintaining your employment.

                                      Find out more about careers in Sap America

                                      19. NVIDIA Corporation, Santa Clara, California

                                        NVIDIA is known for looking after even the smallest of things. With even a “pets allowed” policy this company accepts you for who you are, and helps you to work within your personality. Advancement is also fostered, and you are able to collaborate effectively.

                                        Find out more about careers in NVIDIA

                                        20. KPMG LLP, New York, New York

                                          Communication and progressive collaboration are the foundation of this company’s workforce treatment. Regardless of the level you are, someone is always at the ready to help and the company rewards extra effort with gratitude.

                                          Find out more about careers in KPMG LLP

                                          All in all, it’s safe to say that you will be able to find somewhere to apply your skills (whatever they are) that is all inclusive and highly accommodative. Companies today are being made to understand how much they can get when they treat their employees right and this has opened the door to an encouraging work environment for all.

                                          Happy job hunting!

                                          Featured photo credit: Pexels via pexels.com

                                          Read Next