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Annual Interest Calculation Method for SB / PPF

Written By Easy Life on Tuesday, January 30, 2018 | 1/30/2018 09:02:00 AM

(For Financial Year )

Month
Monthly Deposit
Balance / IBB
April
1000
1000
May
1000
2000
June
1000
3000
July
1000
4000
August
1000
5000
September
1000
6000
October
1000
7000
November
1000
8000
December
1000
9000
January
1000
10000
February
1000
11000
March
1000
12000
Total
12000
78000


SB - Rate of Interest = 4.0%  pa        ie      4.0 /100

Interest Bearing Balance (IBB) = minimum Balance in every month from 10th to end of the month for a particular account

Here Total  IBB is 78000


Annual Interest =
IBB x Interest Rate
Amount should be rounded into nearest rupee
No. of Months x 100


Annual Interest =
78000 x 4.0
 =  263/-   ( rounded  off)
12 x 100

 Example
Year
Opening Balance
Monthly Contribution
Total  Contribution
Interest Rate @4.0%
Closing Balance
1
-
1000
12,000
263
12,263
2
12263
1000
12, 000
***
***

Note :
Please refer the Rate of Interest revised by DOP then and there

Prepared by SAPOST




(For Financial Year )

Month
Monthly Deposit
Balance
IBB
04/04/2018
1000
1000
1000
08/05/2018
1000
2000
1000
03/06/2018
1000
3000
3000
01/07/2018
1000
4000
4000
August
0
4000
4000
02/09/2018
2000
6000
6000
03/10/2018
1000
7000
7000
10/11/2018
1000
8000
7000
15/12/2018
1000
9000
8000
01/01/2019
2000
11000
11000
February
0
11000
11000
20/03/2019
1000
12000
11000

Total
12000

74000


SB - Rate of Interest = 7.60%  pa        ie      7.60 /100

Interest Bearing Balance (IBB) = minimum Balance in every month from 5th to end of the month for a particular account

Here Total  IBB is 74000

Annual Interest =
IBB x Interest Rate
Amount should be rounded into nearest rupee
No. of Months x 100

For Subsequent Deposit
Annual Interest =
74000 x 7.6
 =  468.66      rounded  off to 469/-
12 x 100

 Example
Year
Opening Balance
Monthly Contribution
Total  Contribution
Interest Rate @7.6%
Closing Balance
1
-
1000
12,000
469
12,469
2
12469
1000
12, 000
***
***



For Yearly once Deposit
Eg. One time Deposit Rs 1,00,000 during April  ( on or Before 5th April )

Annual Interest =
1,00,000 x 12 x  7.6
 =  7600     ( rounded  off )
12 x 100

Year
Opening Balance
Yearly Contribution
Total  Contribution
Interest Rate @7.6%
Closing Balance
1
-
1,00,000
1,00,000
7600
107600
2
107600
***
***
***
***

Note :
Please refer the Rate of Interest revised then and there by DOP

Prepared by SAPOST

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