Formula to calculate the interest on Saving account:
Amount * ROI / 100 * No Of Days / 365
Here Amount is the base amount available in your account.
ROI: Rate of interest which your bank is providing you on your saving account.
No of days: Total number of days that amount remain in your saving account.
lets take an example:
I have a saving account in state bank of India. State bank gives 4% rate of interest annually on saving accounts and I kept rupees 100,000 in my saving account for 15 days. Then how much interest I will earn from this.
Amount: 100000ROI: 4No of Days: 15
lets calculate using the formula:
Total interest = Amount * ROI / 100 * No Of Days / 365
= 100000 * 4/100 * 15/365
= 164.38
Total interest a account holder will earn 164.38 rupees in 15 days on the amount of rupees 100000.