Hi Guys. Can I earn interest on on interest earn from fixed deposit? Is it good to leave interest in the same account or deposit it in seprate account in the same bank? Goal is to earn double interest if it is possible. I hope someone will understand what I am trying to say. Thanks in advance.
Fixed deposit
- Thread starter Banny
- Start date
zacobite
KF Mentor
FD if compounding will anyway give u interest on interest.. if simple interest FD then choose. monthly option and reinvest. elsewhere
Skylar
KF Mentor
What is your investment ammount and how much interest are you getting?
Planning to invest 6L in fd in fedbank nre account.
Skylar
KF Mentor
Let’s say you start with 6L in your Fedbank.
- At the end of the first year, the Fedbank adds 10% of your ₹6,00,000 to your total. So, it gives you ₹60,000 (10% of ₹6,00,000).
- Now, your total money in the Fedbank is ₹6,60,000 (₹6,00,000 + ₹60,000).
- In the second year, the Fedbank doesn’t just give you 10% of the original ₹6,00,000. It gives you 10% of the whole amount, which is ₹6,60,000 now.
- So, it gives you ₹66,000 (10% of ₹6,60,000).
- Your total money becomes ₹7,26,000 (₹6,60,000 + ₹66,000).
This keeps happening every year. The piggy bank adds interest on the total amount, not just the initial ₹6,00,000.- At the end of the first year, the Fedbank adds 10% of your ₹6,00,000 to your total. So, it gives you ₹60,000 (10% of ₹6,00,000).
- Now, your total money in the Fedbank is ₹6,60,000 (₹6,00,000 + ₹60,000).
- In the second year, the Fedbank doesn’t just give you 10% of the original ₹6,00,000. It gives you 10% of the whole amount, which is ₹6,60,000 now.
- So, it gives you ₹66,000 (10% of ₹6,60,000).
- Your total money becomes ₹7,26,000 (₹6,60,000 + ₹66,000).
After 10 years, your giant Fedbank could have a lot more money than you started with!
Sarcastic_bubu
KF Ace
Keep your money in one bank and let it be as it is .... because compounding will show you results. Don't do any creativity with that and then see how the returrns grow itself compounding.
