Things to remember: If the total interest is less than Re 1, then it is taken as 0.
If the minimum balance in a month from the 10th day to the last day is Rs 500 or less, then no interest is paid for that month.
Savings bank account: The most common of all the accounts is the savings bank account, as there is no limit on the amount of money that can be deposited and withdrawn.
Balance on the 10th of July = Rs 7024.25 Balance at the end of the month = Rs 4444.60 Principal (P)= Rs 49,340 Rate of Interest (R) = 5% pa Interest = PTR / 100 = 1/12 x 5 /100 x 49340 = Rs 205.58 Hence, the interest paid by the bank at the end of December will be Rs 205.58.
No interest is paid for the month in which an account is closed.
Passbook The bank gives an account holder a book containing the details of the deposits, withdrawals and balance in his account, is called a passbook.
Depositing money into the account or withdrawing money from the account means operating the Savings Bank Account. Computation of Interest The bank pays simple interest, at the specified rate, on the money deposited in a savings bank account.
The person opening an account is called an account holder.
A unique number is given to every account holder, which is known as the account number.