Indian banks credit or give interest to their savings accounts quarterly starting from 1st April to 31st March. The date is not fixed and varies from bank to bank. However, every bank tries to credit the earned interest as soon as possible based on the average maintained sum on their decided term.
|First Quarter||April, May, June||30th June|
|Second Quarter||July, August, September||30th September|
|Third Quarter||October, November, December||31st December|
|Fourth Quarter||January, February, March||31st March|
Let’s take an example, a savings account holder maintained 1 lack of rupees in 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 ₹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 total interest income crosses above ₹10,000 in a given year. But these TDS charges are maintained at the branch level, so you’ll enjoy another limit in some other branch or bank.
Leave a Reply