Surprised with PPF Interest calculation

POSTED BY Prabhu Ravichandran ON April 7, 2014 4:07 pm COMMENTS (6)

Friends,

When I recently checked my PPF account statement, I was surprised at the interest calculated at the end of 31-March-2014. What am I missing? How could the interest been calculated? I’m going to bank as well. But just wanted to ask around here as well.

31-Mar-2014 (31-Mar-2014)     CREDIT INTEREST 1,828.00
12-Mar-2014 (12-Mar-2014)     BY TRANSFER INB 12,300.00
08-Mar-2014 (08-Mar-2014)     BY TRANSFER INB 17,700.00
03-Jan-2014 (03-Jan-2014)     BY TRANSFER INB 20,000.00
13-Dec-2013 (13-Dec-2013)     BY TRANSFER INB 3,900.00
12-Dec-2013 (12-Dec-2013)     BY TRANSFER INB 15,000.00
09-Dec-2013 (09-Dec-2013)     BY TRANSFER INB 10,000.00
01-Nov-2013 (01-Nov-2013)     BY TRANSFER INB 10,000.00
23-Oct-2013 (23-Oct-2013)     BY TRANSFER INB 10,000.00
22-Oct-2013 (22-Oct-2013)     BY TRANSFER INB 100.00

Thanks,

Prabhu

6 replies on this article “Surprised with PPF Interest calculation”

  1. Prabhu Ravichandran says:
    April 7, 2014 at 8:57 pm

    Thanks everyone for the responses. Much appreciated. An eye-opener indeed.

    Reply
    1. manikambh says:
      April 7, 2014 at 9:04 pm

      Also try to invest lumpsome before 5th of april to get greater returns. Investing 30 k at one time and investing 2500 monthly are both different.

      Reply
      1. Prabhu Ravichandran says:
        April 7, 2014 at 9:08 pm

        Manikambh,

        Yes. I realize the mistake I have done. It makes lot of sense now. Thanks again.

        Reply
  2. Hemanth Chandra says:
    April 7, 2014 at 5:41 pm

    Dear Prabhu,

    Please calculate yourself with the help of PPF calculator designed by Manish from the below link. You will come to know why the interest is not as expected by you.

    https://www.jagoinvestor.com/2012/02/how-ppf-interest-is-calculated-video.html

    Regards,
    Hemanth.

    Reply
  3. Viren Phansalkar says:
    April 7, 2014 at 5:03 pm

    Also, the contribution has started from October. This means the first 6 months were lost. Effectively, the interest calculation is only for later 6 months of FY

    Reply
  4. ashalanshu says:
    April 7, 2014 at 4:26 pm

    Dear Prabhu, if you deposit after 5th of month, the amount ‘ll not be considered for that month’s balance and hence you ‘ll not earn any interest on it for that month.

    Thanks

    Ashal

    Reply

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