December 13, 2012 9:12 pm
Hi frds ..
I like to know whether RD and FD provide compounding interest returns?
Thanks & Regards
Tnks BanyanFa 🙂
Tnks Free financial 🙂
Yes they do – it depends from bank to bank – either it can be quarterly, half yearly or yearly.
For example, SBI / ICICI have quarterly while Kotak / Axis offer yearly compounding.
Yes . RDs are compounded quarterly and FDs are compounded monthly, quarterly or annually depending on the scheme
The formula is
final amt = (invest amt)*(1+ rate/n)^(nt)
t is no of years
n is the frequency of compounding
rate of interest
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