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Savings Calculator

Find out how much your savings account balance could grow. Enter your opening balance, what you add each month and the interest rate to see your future balance and the interest you earn.

  • Free, no sign-up
  • Nothing you enter is stored
  • Updated 30 Sept 2026

Calculate your savings interest

Results update as you change the numbers.

₹
₹0₹25,00,000
₹
₹0₹1,00,000
2% p.a.8% p.a.
0 years30 years
0 months11 months

Balance after 5 years

₹3,82,039

  • Total deposits₹3,50,000
    92%
  • Interest earned₹32,039
    8%

Banks work out savings interest on your daily balance and credit it every quarter, so money deposited early in the month earns a little more.

Money you will not need for a year or more can usually earn more in a fixed deposit, while staying safe.

How your money growsDeposits so farInterest earned
Year-by-year growthSee how your balance builds up each year
YearDeposits so farInterest earnedBalance at year end
Year 1₹1,10,000₹2,499₹1,12,499
Year 2₹1,70,000₹6,894₹1,76,894
Year 3₹2,30,000₹13,242₹2,43,242
Year 4₹2,90,000₹21,604₹3,11,604
Year 5₹3,50,000₹32,039₹3,82,039

What does a savings calculator show?

A savings account pays interest on the money you keep in it. This calculator shows how your balance grows when you start with some savings, add a fixed amount every month and let the interest build up.

It is useful for planning an emergency fund, saving for a purchase, or simply seeing how much your idle money earns.

How is savings account interest calculated?

Banks in India work out savings interest on your balance at the end of each day and add it to your account every quarter. Once credited, that interest earns interest too.

Interest for one day

Daily interest = balance × yearly rate ÷ 365

The calculator follows the same pattern using your balance each month, so it closely matches what a bank pays. For example, ₹1,00,000 left for a year at 3% earns about ₹3,034 in interest.

What interest rate do savings accounts pay?

Large banks often pay around 2.5% to 3% a year on savings balances. Some private and small finance banks pay more, sometimes only on higher balances or in slabs. Rates change from time to time, so enter the rate your bank currently offers.

Savings rates are usually below inflation, which means money left in a savings account for years slowly loses buying power.

Savings account, FD or liquid fund?

Savings accountFixed depositLiquid fund
Access to moneyAny timeAt maturity, or early with a lower rateUsually within a working day
Typical returnLowestHigher, fixed at the startSimilar to short-term deposits, not fixed
RiskVery lowVery lowLow, but market-linked
Best forDay-to-day moneyMoney you will not need for a set periodParking money for weeks or months

Many banks also offer a sweep-in facility that moves any balance above a set limit into an FD automatically, giving you FD returns while keeping the money within reach.

How savings interest is taxed

Savings account interest is added to your income and taxed at your slab rate. Under the old tax regime, you can claim a deduction on savings interest of up to ₹10,000 a year, and senior citizens can claim a larger deduction that also covers deposit interest. The new tax regime does not offer this deduction.

Tax rules change with the Budget, so check the current rules for your situation. This calculator shows interest before tax.

Building an emergency fund

  • Aim to keep three to six months of essential expenses where you can reach them quickly.
  • Hold part of it in your savings account and the rest in a sweep-in FD or liquid fund for better returns.
  • Set up an automatic monthly transfer on salary day, so saving happens before spending.
  • Health insurance protects this fund, because a hospital bill is one of the most common reasons emergency savings run out.

Frequently asked questions

1.How is interest calculated on a savings account?

Banks calculate interest on your closing balance every day at the yearly rate divided by 365, and credit the total to your account every quarter. The credited interest then earns interest too.

2.How often is savings account interest credited?

Most banks credit savings interest every quarter, usually at the end of March, June, September and December. Some banks credit it monthly.

3.Is savings account interest taxable?

Yes. It is added to your income and taxed at your slab rate. Under the old tax regime you can claim a deduction of up to ₹10,000 a year on savings interest, with a higher limit for senior citizens.

4.Why does my bank's interest differ slightly from the calculator?

Banks use your exact balance on each day, while the calculator assumes deposits reach your account at the start of each month. The difference is usually small.

5.Should I keep all my savings in a savings account?

Keep enough for daily needs and emergencies there. Money you will not need for a while can earn more in a fixed deposit, a sweep-in FD or a liquid fund.

6.Is money in a savings account safe?

Bank deposits, including savings accounts, are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal and interest together.

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Guides to read next

Plain-English guides from the Policywings desk on the same topic as this calculator.

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