I need help in calculating savings account interest ?

POSTED BY kanwaldoc ON September 21, 2014 10:55 pm ONE COMMENT

I’m new to this. lets say, if i have 2200 rs to put into a saving account in january and the bank offers 6% interest p.a, i also keep adding 2200 to initial amount every month for a total period of 1 year (2200 every month from february to december). how much total amount would i be left with at the end of 1 year?

One reply on this article “I need help in calculating savings account interest ?”

  1. Hemanth Chandra says:
    September 24, 2014 at 8:29 pm

    Savings bank account interest is calculated @ 4% per annum on the day’s mimimum balance. However, the interest is credited into your a/c quarterly or halfyearly which depends on the bank.

    Suppose, you have a balanace of Rs. 9125 in you account today. So, interest for Rs.9125 for one year is (9125*4/100 = 365). So for 1 day you will get an interest of Rs.1

    For simplicity, let us assume that you ahve Rs.9125 in you a/c for 6 months. So at the end of 6 months, you will get interest of Rs.180 ( 180 *Rs.1).
    This 180 will be credited into ur account now and from here on interest is calculated on this amount.

    Reply

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