How to calculate rate of interest in overdraft account

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Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2014 We have bank overdraft account against our FD. Suppose bank charged 9.7% p.a interest. and debited it monthly. How can we calculate the rate of intersest /day.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

11 April 2014 Even though debiting of interest on monthly basis the interest shall be calculate on daily basis on the Overdraft balance of each day in your account.

For example on 1-4-2014 your overdraft balance is Rs.10000 then interest for 1-4-2014 is 10000*(9.7/100)*(1/365)=Rs.2.66, In case on 2-4-2014 your overdraft balance is Rs.5000 then interest for 2-4-2014 is 5000*(9.7/100)*(1/365)=Rs.1.33 thus for all days interest shall be compute and debit to the account on monthly once to your account.

If you required any further detail clarification please provide your email id i will mail you with example in excel sheet.

OM SAI SRI SAI JAI JAI SAI

Message likes : 2 times

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2014 Dear Sir,
I tried it but coulnot get it.
My e-mail id govind@mohindraltd.com
Please email me some example

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

12 April 2014 I send mail to you, please verify your mail and confirm me the receipt of mail.

OM SAI SRI SAI JAI JAI SAI

Message likes : 3 times