RD and fixed deposit compounding interest returns?

POSTED BY Jeetu Ojha ON December 13, 2012 9:12 pm COMMENTS (4)

Hi frds .. 

I like to know  whether RD and FD provide compounding interest returns?

Thanks & Regards

Jeetandar Ojha

4 replies on this article “RD and fixed deposit compounding interest returns?”

  1. Jeetu Ojha says:

    Tnks BanyanFa 🙂

    Regards
    Jeetu Ojha

  2. Jeetu Ojha says:

    Tnks Free financial 🙂

    Regards
    Jeetu Ojha

  3. BanyanFA says:

    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.

  4. 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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