Simple versus compound interest rates for fixed deposits

Fixed deposits are a great way to invest your funds, especially on a long-term basis. They also offer a great protecting against the volatile conditions of the financial market. With this termed deposit, you can invest a fixed amount and earn a return on the investment. Depending on the amount you wish to invest, you can easily earn a return on investment depending on the tenure.

However, you can earn an interest on your fixed deposit through two types. You can either opt for the simple interest method or the compound interest method. Given below are the details of the difference between these two types:

Simple Interest fixed deposit:

Simple interest is best for those who want to earn a small amount, and use it for any financial requirements at a fixed time. This is best for those who want to invest their funds, and yet have some access to using it. although the investment tenure is fixed, you will still have access to the interest that is earned and deposited at the ROI tenure.

Under the simple interest method, your interest is calculated on the initial deposit amount or the principal amount. However, in most cases, the interest amount will mostly calculate on the principal amount. Most of the interest rates are calculated on a quarterly, half-yearly or annually basis. You can use the fixeddeposit calculator to get the ideal amount that will suit your needs.

Compound Interest fixed deposit:

Compound interest, also known as the reinvestment option is great for maximizing returns on a long term basis. This also works well for those who would want to invest for a fixed yet long period of time In this case, the longer the deposit period, the better will be the returns on reinvestment.  Reinvestments under this scheme provide a higher return, especially for those who prioritize liquidity. This is also the best solution for long term deposits.

In the compound interest method, the interest is calculated on the principal and the interest that earned at each maturity period. With the interest that is earned in this form, the compounded outcome is much higher. This is because the interest that is earned is added to the principal amount. Thus, this becomes the basis of the interest calculation. To know how much you can earn with each compounding interest, you can always use the fixed deposit calculator to get the amount required. However, the compounding interest will differ in the different FD schemes offered by the institute. Normally, a bank or financial institute will offer scheme frequencies that are quarterly, half-yearly or annually.

If interest is calculated every month, the annual interest rate will have to be considered on a per month basis. Likewise, if it’s calculated every half-year, the annual interest rate will have to be calculated on a half figure.

How to grow your investment slow and steady through a recurring deposit

As an employed individual, there is more to earning an income. You will need to invest your funds in the right account that will offer you plenty of benefits. But with so many options available, how do you know which is the right choice?

 

The recurring deposit is one such choice. This deposit is a termed deposit, offers you the opportunity to invest a fixed amount on a monthly basis. Depending on your preference, you can invest a small amount which is of a minimum value. Alternatively, you can invest a large amount. Through this investment, you will earn a fixed return on investment at the end of the maturity period. By using the recurring deposit calculator you will be able to calculate the amount you can invest or even the amount you would ideally want in return.

This type of termed deposit, is the best choice for those who are earning and wish to save a small amount regularly. This will help you grow your investment on a slow and steady basis, especially if you have a sufficiently long tenure. However, in order to make the most of this termed deposit, you will need to understand the features of the account.

Features of the recurring deposit account

The main features of the recurring deposit is given as below:

• Like the other termed deposits, the recurring deposit schemes are designed to provide you with returns on a fixed investment.
• The minimum amount that can be deposited for this termed deposit varies from institute to institute. it can also amount to Rs. 100
• The minimum tenure of a deposit can vary from bank to bank. It can start of at 6 months and last for 10 years.
• The rate of interest is equal to that which is offered in a fixed deposit. This makes it one of the investment schemes that offers a high return on investment.
• You cannot withdraw any premature or mid – term funds. If there is any requirement to do so, there is a penalty you will need to pay.
• You can even use the funds in this account as collateral for a loan. Through this process, you can get at most 85% of the deposit as a loan amount.
• Standing instructions can be given to the investing bank so that the recurring deposit can be maintained by the funds getting debited from the required account.

How to use this account to invest your income and savings?

Plan your income in such a manner wherein you can set aside a small amount to invest. By using the recurring deposit calculator, you can calculate the ideal amount that can be invested in this account. You can even adjust the rates and tenure in such a manner that will suit your financial needs. You can even plan your tenure that will allow you to invest your funds for a particular financial requirement.

How to grow your investment slow and steady through a recurring deposit

As an employed individual, there is more to earning an income. You will need to invest your funds in the right account that will offer you plenty of benefits. But with so many options available, how do you know which is the right choice?

 

The recurring deposit is one such choice. This deposit is a termed deposit, offers you the opportunity to invest a fixed amount on a monthly basis. Depending on your preference, you can invest a small amount which is of a minimum value. Alternatively, you can invest a large amount. Through this investment, you will earn a fixed return on investment at the end of the maturity period. By using the recurring deposit calculator you will be able to calculate the amount you can invest or even the amount you would ideally want in return.

This type of termed deposit, is the best choice for those who are earning and wish to save a small amount regularly. This will help you grow your investment on a slow and steady basis, especially if you have a sufficiently long tenure. However, in order to make the most of this termed deposit, you will need to understand the features of the account.

Features of the recurring deposit account

The main features of the recurring deposit is given as below:

• Like the other termed deposits, the recurring deposit schemes are designed to provide you with returns on a fixed investment.
• The minimum amount that can be deposited for this termed deposit varies from institute to institute. it can also amount to Rs. 100
• The minimum tenure of a deposit can vary from bank to bank. It can start of at 6 months and last for 10 years.
• The rate of interest is equal to that which is offered in a fixed deposit. This makes it one of the investment schemes that offers a high return on investment.
• You cannot withdraw any premature or mid – term funds. If there is any requirement to do so, there is a penalty you will need to pay.
• You can even use the funds in this account as collateral for a loan. Through this process, you can get at most 85% of the deposit as a loan amount.
• Standing instructions can be given to the investing bank so that the recurring deposit can be maintained by the funds getting debited from the required account.

How to use this account to invest your income and savings?

Plan your income in such a manner wherein you can set aside a small amount to invest. By using the recurring deposit calculator, you can calculate the ideal amount that can be invested in this account. You can even adjust the rates and tenure in such a manner that will suit your financial needs. You can even plan your tenure that will allow you to invest your funds for a particular financial requirement.

What happens when you do not use your demat account for a long time?

In the previous decades, purchasing and selling equity would have been an irksome job. This was especially difficult without an electronic trading platform. In the absence of this feature, share certificated would have been held in physical form. This was expected to be preserved in a safe condition so that the owner can claim proof of ownership in a company.

But has the electronic trading platforms have replaced the traditional systems, holding physical shares have become a thing of the past. However, there is still the issue of handling these share certificates in the current trend. With the current Demat account, your shares will be dematerialized into electronic shares, and stored in this account.

While initially, certain individuals would open a Demat account with great enthusiasm, which falters after some time. This can occur when individuals have open this Demat account to sell off old shares held in physical form or to apply for the initial public offerings. For those who have held convertible debentures in the past would be in a generation of 60s or 70s. For whatever reason, these individuals may have sold off their shares and yet haven’t closed down the Demat account. Likewise, the individuals who have opened the account to subscribe to the IPO’s may have kept their accounts idle for long.

What happens when you your Demat account is idle for long?
In the event your account is not utilized for long, it is termed as inactive by the depository participant. It is then further classified as dormant. Although there is no fixed rule how long a Demat account needs to be inactive, you will need to reactive it in order to use it for any purchase or selling of equity. Alternatively, depository participants do not classify an inactive account as dormant if the account holder has paid the required annual maintenance fees. At times, the depository participants will follow up with the account holder and inform the client about the same. If the account is not utilized in the account within the given period, it is classified as dormant.

How to reactive a dormant Demat account?
Here are a few steps you can take to reactivate your Demat account:

• Call or email the customer service for the required reactivation instructions.
• Check out the required Demat maintenance dues and see if you fulfil it.
• Pay a separate reactivation charge
• Be aware of your known your customer requirements.

Once these steps have been undertaken, you must ensure that you satisfy the required requirements to keep your account active. If you have any investment in this account, keep monitoring your portfolio at regular intervals.

Online mobile recharge: Steps to getting an instant mobile recharge

Owning a prepaid mobile connection will offer you plenty of benefits. For one, you can make any phone calls, send messages or even surf the net through your connection. All this can be done if you have sufficient balance on your phone. However, once your balance is finished, you will need to get the required recharge in order to access the above activities. Here is how you can go about getting an online mobile recharge today.

Step 1: Choose a good and reliable recharge website

Today you can find plenty of sources that can allow you recharge your phone. One option that is available is the banking website. All you need to do is log online and make the transfer from your bank account to your mobile phone. Alternatively, you can log online your mobile network carrier’s and make the required transfer. Apart from these two options, you can also access the third party websites that offer online mobile phone recharges as a part of their offerings.

Step 2: register with an account

Most of these options allow you to get the required recharge without the needs to register an account. You can directly give your recharge requirements, phone number and mode of payment to recharge your phone. However, getting an account on any of these websites will provide you with a lot of benefits. Through your account, you can get access to the best deals or even customized discounts on the online mobile recharge you use. Additionally, you will have access to different means of making the required payment such as credit, debit or net transfer from your bank account. In order to create an account, you will need to submit minimal details such as your name, financial details and you mobile number. Once you finish the process, a verification process will take place wherein a code will be sent through an SMS to the registered number.

Step 3: Enter your recharge domination

Once you have finished registering your account, you can opt for the recharge domination you require. In the case of recharging your phone through the bank account, you can put in a fixed recharge domination. However, with the mobile network carrier and the third party website you will have plenty of recharge options you can consider. You can check out the different offers and recharge options available provide by your network provider. Once you have chosen the required recharge option, you can choose the mode of payment through the credit, debit or online bank transfer. Once the transfer is successful, you will get an alert.

There are plenty of benefits to this form of recharge. Through this process, you save a lot of time without the need to depend on others for a recharge. Additionally, you can make these recharges anytime you require it, especially during the day.