Is FD Compound Interest?
Yes, most FDs do offer compound interest and I’ve personally seen the difference it makes over time. When I first started investing in FDs, I didn’t think much about whether it was simple or compound interest. But once I chose quarterly compounding, I noticed my returns grew faster. Basically, with compound interest, your interest earns interest which means the bank adds the earned interest to your principal, and the next cycle earns interest on that bigger amount. So if you’re looking to let your money grow passively over time, go for FDs with compound interest.