Banking
 Calculating the interest on a savings bank account:
Interest for the month is calculated on the minimum balance between the 10th day and the last day of the month (both days included).
Convert the minimum balance of each month as a multiple of Rs 10. For example, if the minimum balance is between Rs 560 to Rs 565, take it as Rs 560; if it is between Rs 565·01 to Rs 570, take it as Rs 570.
Add all these balances. However, if the same balance continues for n months, then multiply this balance by n, rather than writing it n times and then adding.
Find simple interest on this sum for one month.
If the interest is less than Re 1, neglect it.
No interest is paid for the month in which the account is closed.  Calculation of interest on recurring deposits:
Here the investor invests fixed amount of money (in multiples of Rs 5) every month, and after a fixed period (in multiples of 12 months), gets the money back with interest, called maturity value.
Maturity value tables are available to calculate maturity value.
Exercise
 Mrs Chatterjee opened a savings account in Canara Bank on 4th January, 2000, with Rs 2000. On 8th January, she deposited Rs 560 and on 10th January, she withdrew Rs 376·50 by a cheque. On 16th January she withdrew Rs 500 and on 23rd January she deposited Rs 235·45 by a cheque. She withdrew Rs 400 on 13th March. Write the entries in her passbook and find the interest due to her for the period ending 31st March at 5% p.a.

Mr Kumar opened a savings account in Punjab National Bank on 3rd January 1999 with Rs 5000. His transactions during the year 1999 were as under:
January 12, deposited Rs 3718·46 by cheque
February 7, deposited Rs 2000·00 by cash
May 16, withdrew Rs 4102·50 by cheque
June 3, withdrew Rs 1500·00
June 26, withdrew Rs 700·00
August 13, deposited Rs 6726·80 by cheque
September 10, deposited Rs 3000·00 by cash
November 4, withdrew Rs 2500·00
Write the entries in his passbook. He closed his account on 19th December, 1999. If the bank paid interest (computed annually) at 5·5%, find the amount he received on the day of closing his account.  An incomplete page from a savings account passbook is given below:
Date Particulars Amount(Withdrawals)
Rs PAmont(Deposit)
Rs PBalance
Rs P1498 B / F ... ... 6227.60 3498 To self 1700.00 ... ... 16498 By cash ... 3250.00 ... 9798 By cheque ... 828.17 ... 10998 By cash ... 2500.00 ... 13998 By cheque 1519.30 ... ... 30998 By interest ... ... ... 71098 By cash ... 600.00 ... 2199 To self 3000.0 ... ... 7399 By cheque ... 740.00 ... 31399 By interest ... ... ...
If the bank pays interest at the rate of 6% p.a. compounded halfyearly, complete the above page of the passbook.  A page from Anshul's savings bank passbook is given below:
Date
Year 2000Particulars Amount(Withdrawals)
Rs PAmount(Deposit)
Rs PBalance
Rs PJanuary 1 B/F ... ... 8026.15 January 5 By cash ... 650.00 8676.15 February 13 To self 2500.00 ... 6176.15 June 4 By Cheque ... 385.00 6561.15 July 19 By Cheque 718.50 ... 5842.15
He closed the account on 25th July 2000 and received Rs 6042·45. Calculate the rate of interest.  Karuna deposits Rs 250 per month in a bank recurring deposit account for 3 years. What amount will she get on maturity?
 Prabha saves Rs 100 per month and puts it in a bank recurring deposit scheme. In order to have a total amount of Rs 6000 nearly, how many instalments must she deposit?
 Kamal deposits Rs 350 per month in a cumulative deposit account for 5 years. What amount will he get on maturity?
 Sabrina deposits Rs 80 per month in a cumulative deposit scheme for 6 years. Find the amount (to the nearest rupee) payable to her on maturity.
 Rajesh needs Rs 25000 after 5 years. How much money should he invest every month in a recurring deposit scheme to get approximately the required amount after 5 years?
Answers
1. Rs 21·33 2. Rs 12087·163.
Date  Particulars  Amount(Withdrawals) Rs P 
Amont(Deposit) Rs P 
Balance Rs P 
1498  B / F  ...  ...  6227.60 
3498  To self  1700.00  ...  4527.60 
16498  By cash  ...  3250.00  7777.60 
9798  By cheque  ...  828.17  8605.77 
10998  By cash  ...  2500.00  11105.77 
13998  By cheque  1519.30  ...  9586.47 
30998  By interest  ...  234.50  9820.97 
71098  By cash  ...  600.00  10420.97 
2199  To self  3000.0  ...  7420.97 
7399  By cheque  ...  740.00  8160.97 
31399  By interest  ...  271.30  8432.27 
4. 6% 5. Rs 11024·50 6. 48
7. Rs 29567·30 8. Rs 8710 9. Rs 300