calculation of interest

POSTED BY gnanesh.balaram ON April 27, 2012 6:24 pm COMMENTS (4)

Good evening sir
I am gnanesh here from Bangalore Thank for the upload of the video of hoe to calculate the interest for ppf.

I right now student studing diploma final year .My big brothe told me about the PPF account and it sound me interesting so I opened an account in my bank i.e. SBI but I was not knowing how the interest r calculated after see the video I came to know once again thanks .

My Question is

Q My aim is to deposit 5000rs a yr for ppf account so can u tell me how can I earn more interest .

1 st method

if i deposit 5000rs in following denomination from 1st month to 12th month

300,200,500,300,400,200 …………………………….. etc will I get more interest .

2nd method

or I will collect the 3-4 amount once the amount reach 1500Rs or 2000rs I will deposit

Which is the best method 1st method or 2nd method to earn more interest . or if have any better tell me sir I will be waiting for ur reply

4 replies on this article “calculation of interest”

  1. Gnanesh

    The 1st method will give you more interest , for the simple reason that earliar the money got into your PPF account. Its always going to give you more interest if you put more money in PPF earliar .

  2. Sachin says:

    Don’t think so much about interest. The small (very small) difference in your case will not have big impact in you. If you want to start just start it. THINK SIMPLE !!!

    1. says:

      thanks for the reply but can u say which method is best

      1. Dear Gnanesh, in addition to your first method, try to invest always between 1st to 5th of every month & also try to invest max. at the start of the FY i.e. in the month of april or May to get higher interest.



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