2 Replies to “how can i calculate ppf interest for 2011-12, when interest rate is 8% and 8.6%?”

  1. If interest is 8 for seven months then multiply the amount of principal by seven and again by eight and divide by 1200.. Similarly principal amount to be multiplied by 8.6 and five (remaining months in the year) and divided by 1200.. Add both the results and you have interest earned.

  2. PPF interest is calculated on monthly basis.

    PPF interest is calculated monthly on the lowest balance between the end of the 5th day and last day of month, however the total interest in the year is added back to PPF only at the year-end that is 31st march every year.


    In pursuance of section 5 of the Public Provident Fund Act, 1968 (23 of 1968) the Central Government hereby notifies that the subscriptions made to the fund on or after the 1st day of December, 2011 and balances at the credit of the subscriber shall bear interest at the rate of 8.6 percent, per annum.

    so how interest is given (credited for financial year 2011-12)

    from 1.4. 2011 to 30.11.2011 8%
    from 1.12.2011 to 31.03. 2012 8.6%


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