Please refer to page 40 of the Annual Report

IT SHOWS BALANCE IN THE SAVINGS ACCOUNT ASRs.29,96,981.99 as on 31/03/2013 and Rs.1,09,02, 122.74 as on 31/03/2014

Now refer to page 42 of the Annual Report

It shows the interest income for the year 2013-14 as Rs.3, 33, 885.57

A Balance in Savings Account as on 31.03.2013 2996981.99

B Balance in Savings Account as on 31.03.2014 10902122.74

C Average balance during 2013-14 (A+B)/2 6949552.37

D Interest received for the year 333885.57

E Average yied for the year ( D*100/C) 4.8

Taking the balance of 31/03/2013 as the opening balance and the balance as on 31/03/2014 as the closing balance, the average balance in the savings bank for the year comes to Rs. 69,49,552.37.On this amount interest received for the year is Rs.333885.57. The average yield on the balance in the savings account thus comes to 4.8%

As against this yield of 4.80 % there are banks offering interest at the rate of 7% in the savings accounts. On the average balance of Rs. 69,49552.37 the interest loss of 2.2 % ( 7% minus 4.8%) comes to Rs.1,52,890.15

There are banks offering interest at the rate of 6% to 8% for maturities ranging from 90 days to less than 365 days.

Instead of keeping the funds in the savings account a part or the whole could have been invested in the fixed deposits thus yielding higher returns.

The idle balance lying in the savings account could have been kept in the fixed deposits for periods ranging from 3 months to six months yielding interest at such rates which were definitely more than 4% ( savings rate)

BANKS PAYING Best Rate of Interest on Savings Bank Accounts in India* / Highest Interest on Saving Accounts

Name of the Bank / Institution

Maximum Rate of Interest on Saving Accounts (for balance upto Rs.1 lac)

Best Rate of Interest on Saving Accounts (balance ABOVE Rs.1 lac)

wef

Yes Bank 6.00% 7.00% 22/12/2011

Kotak Mahindera Bank 5.50% 6.00% 01/11/2011

IndusInd Bank 5.50% 6.00% 01/11/2011

The Ratnakar Bank 5.50% 5.50% 01/11/2011

Let us set right our own house and not repeat such things in future