Explanation:

At present, the interest is credited in savings bank account on half-yearly basis. Interest rate on savings bank account is calculated on daily basis since April 1, 2010.
In 2011, the central bank had decided to give freedom to commercial banks to fix savings bank deposit rates, the last bastion of the regulated interest-rate regime. While giving banks this freedom, It had been decided that a uniform rate will have to be offered on deposits of up to Rs. 1 lakh.
On higher amounts, banks are allowed to offer differential rates to depositors.