Tweets on 2009-01-22

by Vinaya HS on January 22, 2009

in Finance

Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

I’ve been working on improving a few Excel-based calculators that I have previously published. Specifically, I have improved the following calculators:

Let me know how I can further improve these calculators. What other calculators do you wish to see? I’ve received many requests for a Home Loan EMI calculator; I will shortly publish one. You can also download a Personal Loan EMI calculator [instructions for usage].

Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 13 comments… read them below or add one }

Alok Sharma January 22, 2009 at 9:13 AM

Can you provide some Compound Interest Calculator.

Vinaya HS January 22, 2009 at 3:45 PM

Alok, can you be more specific? What exactly do you mean by Compound Interest calculator? Do you mean for Fixed Deposits and such?

chandra January 23, 2009 at 2:33 PM

Hi vinay,

I’ve been reading your articles for quite some time and feel helping very much. Keep up the good work.

And just now i saw your PPF calculator, it’s really a good effort to project the earning for some 20years time. But i think “Deposits in the account earns an interest of 8% per annum compounded annually”.[ref:
But our tool calculates on monthly 8% basis which is too optimistic.

Plz clarify and correct me if i’m wrong.

- thanks

Raj January 25, 2009 at 4:20 PM

Hi Vinay,
Chandra is absolutely right. I have also observed the same thing. The given calculator is calculating and compounding the interest monthly basis which is not true as you can just follow the link which says interest on PPF is always calcualted annually not monthly. As this site is gov site so true
infromation would be published here.
Hope this will help…

Vinaya HS January 28, 2009 at 2:10 PM

Chandra and Raj,

Suppose you deposit Rs 5,000 every month for 12 months (April to March). By your arguments, the interest is calculated only once (on March 31st) for the entire Rs 60,000 (5,000 x 12). If such was the case, you might as well deposit Rs 60,000 exactly on March 31st. There’s no benefit to be had by saving monthly.

See SBI’s website that says:

8% per annum credited in account on 31st March every year calculated on the minimum balance between 5th day and end of the month.

Vinaya HS January 28, 2009 at 2:16 PM

Also, if you look at your Savings Account rules, it says 3.5% per annum. But the actual interest is calculated each month on the lowest balance between the 10th and last day of that month and this has a cumulative effect.

chandra February 10, 2009 at 5:54 PM

Hi vinaya,

thx for info. and i had to re check my understanding about PPF interest calculation by verifying my PPF account pass book & other related articles.

I observed that 8% per annum interest is calculated on 31st/march of every year for the investment made during that financial year on pro-rata basis. Let me throw an example from my perspective: [total 70000/- per F.Y. made in 7 transactions]
i. April 01st – 10000/-
ii. April 6th – 10000/-
iii. July 22nd – 10000/-
iv. Jan 2nd – 10000/-
v. Jan 31st – 10000/-
vi. Mar 01st – 10000/-
vii. Mar 31st – 10000/-

Interest earned for above 70k investment for that financial year would be as below:
i. 10000 * 8% = 800 [full interest for 12 months]
ii. 10000 * 8% * 11/12 = 733.33 [attracts interest for 11 months only as it is after 5th of that month]
iii. 10000 * 8% * 8/12 = 533.33 [attracts interest for 7 months only as it is after 5th of that month]
iv. 10000 * 8% * 3/12 = 200 [attracts interest for 3 months only]
v. 10000 * 8% * 2/12 = 133.33 [attracts interest for 2 months only as it is after 5th of that month]
vi. 10000 * 8% * 1/12 = 66.67 [attracts interest for 1 month only]
vii. 10000 * 8% * 0/12 = 0 [attracts no interest for that F.Y. as it is after 5th of that month]
Total interest = sum of all above i.e. 2466.67 [will get rounded off to 2467/-]

And the balance on Apr 01st of next financial year for that PPF a/c would be 72467/-

So i suggest to invest whole 70000/- during apr 01st – apr 05th to get highest advantage, which may not be that easy for all.

Hope, this would help. Plz update me if i’m mistaken.

- chandra

Debajit konwar February 20, 2009 at 4:40 PM

If I have invested Rs.1000/-per month in Public provident fund in state bank of India how many rupees i will be collect after complete 15 years

rajendra singh September 1, 2009 at 5:18 AM

dear vinai
i want a calculator for gpf (same as ppf) but monthly contribution vary as
mar 09 4500
apr 09 4500
may 09 3570 (recd as arrear )
june 09 4500
july 09 3545 (recd as arrear)
thus there are 12 common figures but 2 or 3 are different amounts .how can i calculate the interest of that year.can you help me ?

Rangarajan December 7, 2009 at 2:18 PM

Hello Vinay and others

can anyone tell if we can contribute Rs.70k in each of the account of self, spouse, kids. Somewhere I read that the total contribution of self & as guardian can only be Rs.70k? is that only from a 80c deduction perspective or is there a celing of total contribution of Self + guardian as Rs.70k?

joddha aniruddhsinh January 28, 2010 at 3:39 PM

hello sir,pls reply me if i have invest 1000/- rs per month in public provident fund in state bank of india how many rupees i will be collect after comlete 15 years.

sankar December 3, 2010 at 9:17 PM

I want to know that whether interest difference GPF and PPF which one is most best. If Iam invested Rs 50,000/= per year each investment how much amount get it after 15 years.

nirjhar February 16, 2012 at 3:48 PM

Hi Vinay,
Chnadra is correct.If i deposit 70000 on say 1st april,there is no interest credited by PPF at the end of every month its on ly at the end of the FY .
So there is no cumulative effect of interest .it will be simple : P*R*T/100
= 70000*8%* 1yr/100 =5600

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