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Calculation Of Interest. (Savings Bank)

Calculation Of Interest. (Savings Bank). Interest in a SB account is calculated every year on 31 st March. To calculate the annual interest in a SB account Interest Bearing Balance (IBB) is carried out each month.

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Calculation Of Interest. (Savings Bank)

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  1. Calculation Of Interest.(Savings Bank) • Interest in a SB account is calculated every year on 31st March. • To calculate the annual interest in a SB account Interest Bearing Balance (IBB) is carried out each month. • IBB is the Lowest balance between close of 10th and last day of calendar month. • If the balance in a particular month is less than Rs.20/- ignore it for IBB . RULE NO : 74 POSB Manual Volume -I

  2. * IBB is Calculated from April to March every year. * The formula of calculation of interest is as follows. Total Interest Bearing Balance X Rate of interest Interest = ----------------------------------------------------- 12 X 100 RULE NO : 74 POSB Manual Volume -I

  3. If the Interest arrived at is less than Re.1/- it is not added to the account. • Interest arrived is always rounded to nearest rupee. • Annual Interest calculation is done at Head Office only. RULE NO : 74 POSB Manual Volume -I

  4. Interest statement is sent to all Departmental Sub Offices by HO for posting in passbooks. • In Sanchya Post Software Interest is calculated automatically. RULE NO : 74 POSB Manual Volume -I

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