7.7% interest compounded annually vs 7.5% compounded quarterly: Which fixed income rate works better? The answer may surprise you
5-year NSC vs 5-year FD: Ever compared how two fixed income instruments with similar annual interest rates but different compounding frequencies? Compare the Five-Year Post Office Time Deposit (fixed deposit) and the Post Office National Savings Certificates (NSC) here to understand the true power of compounding. The examples and figures may leave you with some food for thought this weekend.
Power of compounding: Do you know how compounding really works? Here are a few examples to demonstrate how compounding makes a measurable difference in fixed income investment returns over time. | Image: Pexels