Method of Annual Interest Calculation for Post Office SB/PPF Account

 

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

PPF - 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