Flexible Compound Interest Calculator
Calculate compound interest with flexible frequency (daily, monthly, quarterly, annual). Useful for FDs, RDs, and savings accounts.
Flexible Compound Interest Calculator
Result
How it works
Formula Used
A = P(1 + r/n)^(nt), CI = A - P P = principal, r = annual rate, n = compounding frequency, t = time in years
Smart Tips
- More frequent compounding = higher interest
- Monthly compounding is standard for banks
- Compare effective rate across banks
Best Used For
Calculate FD maturity, compare bank savings rates
FAQs
Which is better—monthly or quarterly compounding?
Monthly compounds more frequently, so you earn more. ₹1L at 7.5% for 5 years: Quarterly = ₹1.43L, Monthly = ₹1.45L. Difference is ₹1,800—small but adds up. Always choose monthly if available.
What's the difference between 7% p.a. and 7% effective?
7% p.a. with quarterly compounding doesn't equal 7% effective. Effective rate accounts for compounding. 7% p.a. quarterly ≈ 7.18% effective. Always compare effective rates when choosing banks for FDs/savings.
Should I choose highest interest FD or most frequent compounding?
Choose highest effective rate. If Bank A offers 7.2% annual (quarterly), Bank B offers 7% annual (monthly), calculate effective rates. Usually highest interest wins, but compare final maturity values to be sure.
Is daily compounding really better than monthly?
Yes, theoretically. Daily compounds 30× more than monthly, so you earn more interest on interest. But the difference is marginal—maybe ₹300 on ₹1L over a year. Unless interest is very high, the difference doesn't matter much.
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