Annual Interest Calculation Method for SB / PPF

Annual Interest Calculation Method - For SB (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

Annual Interest Calculation Method - For PPF (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

S