Fixed Deposit

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Respected Sir / Madam, I had made a fixed deposit on 13-10-2009 with PNB, amounting Rs 40,000 /- for 1 year having date of maturity 13-10-2010, the Maturity value rs 42,664 and interest rate is 6.5 % p.a , As we normally calculate the interest on rs 40000 @ 6.5 % for 1 yr the interest amount came to rs 2600 , but in confirmation deposit issued by bank the maturity value written as rs 42664 instead of rs 42600 ,what is the reason for this difference ?? And please also tell me whether bank consider the day on which we made FD with it for interest purpose ???

Replies (2)

They calculated the same Qtry basis dear. Calculations for the same is given below:

 

40000 650 40650
40650 660.5625 41310.56
41310.56 671.2966 41981.86
41981.86 682.2052 42664.06

dear, bank always calculate interest on quarterly compounded basis.


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