The change in interest payable is as illustrated in the table below:

New interest rate computation
Date	Transaction	Amount	Balance	Old system		New system
				Amount	Interest	Amount	Days	Interest
1-Jun	Opening balance	Rs 12,000				Rs 12,000	1	Rs 1.15
2-Jun	Deposit	Rs 25,000	Rs 37,000			Rs 37,000	1	Rs 3.55
3-Jun	Withdrawal	Rs 5,000	Rs32,000			Rs32,000	5	Rs 15.35
8-Jun	Withdrawal	Rs 6,000	Rs 26,000			Rs 26,000	2	Rs 4.98
10-Jun	Withdrawal	Rs 12,000	Rs 14,000			Rs 14,000	3	Rs 4.02
13-Jun	Deposit	Rs 3,000	Rs 17,000			Rs 17,000	5	Rs 8.15
18-Jun	Withdrawal	Rs 2,500	Rs 14,500			Rs 14,500	8	Rs 11.12
26-Jun	Withdrawal	Rs 4,500	Rs 10,000			Rs 10,000	5	Rs 4.8
30-Jun	Total interest		Rs 10,000	Rs 10,000	Rs 29.17	Total	30	Rs 53.12

If one were to go by the older method of interest calculated at 3.5 per cent per annum on the minimum balance between the 10th  and the last day of the month. The interest workings were calculated on the Rs 10,000 balance that was the minimum between the 10th and the 30th of the month.

However in the new system of calculation, interest is calculated on a daily basis thereby giving the depositor almost twice the amount of interest. With the interest amounts almost doubling it will provide a better cushion for the conservative investor who prefers the virtually risk free bank deposits to any other investments.

However in a rising interest regime; this move is more than what one could ask for- liquidity and higher interest. But don't make this a reason to be lazy- Invest your money according to your goals and your time horizon. Keep 2 to 6 months expenses as emergency funds in a combination of Bank accounts and liquid funds. Don't let that money be idle, even though it is better than before.