As per the RBI regulation, a Savings Account interest rate is determined every day depending on your closing balance. This is how the interest on the Savings Account is calculated: Interest = Daily balance * (Number of Days) * Interest / (Days in a Year). If your daily balance amount is Rs.3 lakhs and interest on the Savings Account is 7% per year, the computation will be: 3 lakhs * 30 * (7/100) / 365 = 1726