Key Points
Leap years are those that occur every four years and have 366 days as compared to 365..
In all cases of Domestic Term Deposits ( period of deposit more than a year) where the terminal quarter is incomplete, interest should be calculated for complete quarter and the actual number of days, reckoning the year 365/366 days viz the calculation of interest on such deposits should be in order of completed quarters and days...
For Deposits of 2 Quarters and above, interest is calculated in quarterly compounded for complete quarters and where the terminal quarter incomplete, interest is calculated proportionately for the actual no of days reckoning the year 365/366 days.The.
Short Deposits of less than 2 quarters but more than 1 quarter simple interest will be paid for complete quarter and plus interest for remaining days reckoning the year 365-366 days( without compound effect).For short deposits of less than one quarter interest is calculated proportionately for actual number for days reckoning the year 365-366 days...
According to the IDFC FIRST Bank website, The Interest calculated is rounded up to the nearest rupee and calculation of interest is basis 365 days for the period of fixed deposit falling in a non-leap (financial) year and 366 days for the period of fixed deposit falling in a leap (financial) year...
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How are fixed deposit rates calculated in a leap year? Here’s how banks handle the extra day
29, Feb, 24Financial Literacy News: Learn how fixed deposit rates are calculated in a leap year and how different banks handle the extra day. Bank of Baroda, Jana Small Finance Bank, Au Small Finance Bank, IDFC FIRST Bank, and HDFC Bank are some of the banks mentioned in the article.