Annual Interest Calculation Method

Annual Interest Calculation Method (For Financial Year ) Month Deposit Balance 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 SSA - Rate of Interest = 9.1%  pa        ie      9.1 /100 Interest Bearing Balance (IBB) = minimum Balance in every month from 10th to end of the month for a particular account Annual Interest = IBB x Interest Rate Amount should be rounded into nearest rupee No. of Months x 100 Annual Interest = 78000 x 9.1  =  591.50   rounded  into 592 /- 12 x 100  Example Year Opening Balance Monthly Contribution Total  Contribution Interest Rate @9.1% Closing Balance 1 - 1000 12,000 592 12,592 2 12592 1000 12, 000 1737 26,329 Prepared by SAPOST