I am a software professional. I have one question. How do banks calculate interest on money deposited, if I get, say, 10 % per annum?
Say I deposit say RS.1000 on the 1st day of the month; then I deposit RS.1000 on fifth; then I deposit Rs1000 on tenth day of the month; and in the same way on 15th, 20th, 25th, 30th.
According to the rule of RBI in India banks deposit interest monthly. So I have Rs.7000 in my bank account. Can I get interest on Rs. 7000 even if I deposit the last Rs.1000 on the 30th of the month? Is their software sophisticated to keep each transaction and calculate interest accordingly?