Causes of differences in the computation of accrued interest

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mahesh (Querist)
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22 April 2012 What are items that create differences in the computation of accrued interest on fixed deposit by bank and as per our calculation?
I computed the same but i am getting little bit difference between bank and my calculation? If any charges were deducted then what could be those charges?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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23 April 2012 Bank calculates on the basis of per day whereas you have calculated on per month basis this will cause difference in interest calculation. You might also be calculating on the basis of 30 days each month and for balance 6days again you are taking interest which bank is not calculating.

mahesh

mahesh (Querist)
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23 April 2012 I have asked about accrued interest on fixed deposits. Bank will mention the rate of interest and maturity amount on the fixed deposit receipt. In FD's, days are fixed so where would be the difference because of days.
I want other items which gives differences like charges, etc
For savings account, banks will calculate on the balance at the end of the day basis.

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dhanwanti kourani

dhanwanti kourani (Expert)
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24 April 2012 You should ask from bank the compounding period they are considering...whether it is qtly,hlf-yrly or yrly...