Interest for Fixed Deposit

[greenarrow_23]

Is the interest in fixed deposit schemes compounded?

Sent from Motorola XT1095 using GAGT

 

[sgdividends]

Is the interest in fixed deposit schemes compounded?

Sent from Motorola XT1095 using GAGT

No its not compounded.

Ordinary savings accounts , like Fastsaver CIMB (1%pa) for example is compounded monthly as they give the interest monthly.


Effectively, Fastsaver gives 1.01% if a person keeps for 12 months in a stretch.

 

[greenarrow_23]

No its not compounded.

Ordinary savings accounts , like Fastsaver CIMB (1%pa) for example is compounded monthly as they give the interest monthly.


Effectively, Fastsaver gives 1.01% if a person keeps for 12 months in a stretch.

Oh I meant if the fixed deposit scheme is 24-months.

So at a rate of 1.95% p.a. if I put 10000 in, how do I calculate the interest received after 2 years?

Should it be (10000 x 1.0195^2) - 10000?

Sent from Motorola XT1095 using GAGT

 

[sgdividends]

Oh I meant if the fixed deposit scheme is 24-months.

So at a rate of 1.95% p.a. if I put 10000 in, how do I calculate the interest received after 2 years?

Should it be (10000 x 1.0195^2) - 10000?

Sent from Motorola XT1095 using GAGT

No it should be just (1.95/100 times $10000) times 2. Because they dont give u 1 years interest and add to your principal $10000.

In the end, need to see the terms and conditions of the product as they very innovative these days