Bank overdraft interest.

I am also facing the same problem using the same methid. In my case the interest rate is 16.50% - Please help

Well Sanjib ji the method followed by you is correct.Just ADD BACK the amount of cheque deposited but cleared  by bank on the next day from the day closing balance.I think then interest calculated by youwill be equal to the one charged by bank.

Eg.On 3rd May,2012 -closing balance is 200,000/- Dr

cheque deposited on 3rd may,2012 f Rs 10,000/-,but value date shown by bank is 4th may,2012

Then take the closing balance for  3rdMay,2012 as (2,00,000+10,000) i.e.2,10,000/- for interest calulation purpose
 

DEar Sirs,

Cheques we deposited with bank give credit next day and accordingly, on dayend balance i calculate interest by the step like this.... balance Xrate of interest  divided by 365 days.  and month end total does not matched with the interest charged by bank. please solve the problem.

p.k.biswas.

Please send me the excel sheeet of bank interest computation prepared by you.May  be i can help you with the calculations.

you can ask the bank for advice for calculation of interest they will provide you...