6 replies on this article “Compound interest”

1. TheZionView says:

   March 31, 2012 at 4:58 pm

   Rajan

   If you are not going to withdraw the interest amount it will then act as compounding factor in the next interest cycle. If you withdraw the compounding effect is gone.Which means its up to you to make it compound or not

   In case of FD while opening the account itself you can specify the compound option

   Mutual Fund(growth) and PPF is automatically compounded

   Reply
2. ashal jauhari says:

   March 31, 2012 at 2:45 pm

   Dear Rajan, in case of SB account, the interest is calculated on the daily end balance & credited qtly or 1/2 yly. It’s simple interest & not compounded.

   thanks

   Ashal

   Reply
3. VIGNESH BASKARAN says:

   March 31, 2012 at 1:48 pm

   Hi rajan

   In debt investments PPF investment will be having compounding effect.

   In Mutual funds investments also u will have the power of compounding.

   if u select the growth option then u can experience the power of compounding in long term.

   the below link discussed in detail abt ur question.

   http://localhost/jagoforum2/sip-vs-ppf/2729/

   Pls go through

   Reply
4. rajan.panchal24@gmail.com says:

   March 31, 2012 at 8:29 am

   Thanks.
   Where I can get compound interest? I am mean in which kind of investment?

   Reply
   1. ashal jauhari says:

      March 31, 2012 at 2:51 pm

      Dear Rajan, Bank FDs & RDs are example of compounding interest earning instrument. then there is PF or PPF.

      Thanks

      Ashal

      Reply
5. justgrowmymoney says:

   March 30, 2012 at 11:08 pm

   There is no compounding in SB interest. The daily balances are averaged out (say for 180 days). Assume this avg is 1 lac. 4% interest is 4000. For 180 days it is 4000*180/365 = little short of Rs. 2000.

   Reply

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