Interest Calculator On Savings Account PNB

PNB Savings Account Interest Formula:

\[ A = P \times (1 + R / 4)^{4 \times T} \]

Maturity Amount (A):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the PNB Savings Account Interest Formula?

The PNB (Punjab National Bank) savings account interest formula calculates the maturity amount for savings accounts with quarterly compounding. It provides an accurate estimate of the final amount including principal and interest earned over time.

2. How Does the Calculator Work?

The calculator uses the PNB savings account interest formula:

\[ A = P \times (1 + R / 4)^{4 \times T} \]

Where:

\( P \) — Principal amount (INR)
\( R \) — Annual interest rate (decimal)
\( T \) — Time period in years
\( A \) — Maturity amount (INR)

Explanation: The formula calculates quarterly compounded interest, where the annual rate is divided by 4 and the time is multiplied by 4 to account for quarterly compounding periods.

3. Importance of Interest Calculation

Details: Accurate interest calculation helps customers understand their potential earnings, plan their savings goals, and compare different investment options for optimal financial planning.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate as a decimal (e.g., 0.05 for 5%), and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why quarterly compounding for PNB savings accounts?
A: Most Indian banks, including PNB, compound savings account interest quarterly as per RBI guidelines, providing better returns than annual compounding.

Q2: How to convert percentage rate to decimal?
A: Divide the percentage by 100. For example, 4.5% becomes 0.045 as a decimal.

Q3: Are there any minimum balance requirements?
A: PNB may have minimum balance requirements for savings accounts, but this calculator focuses solely on interest calculation.

Q4: Does this include taxes on interest income?
A: No, this calculator shows gross interest. Interest income above ₹10,000 per financial year may be subject to TDS as per Indian tax laws.

Q5: Are interest rates fixed or variable?
A: Savings account interest rates can change based on RBI policies and bank decisions. This calculator assumes a fixed rate for the entire period.