What is compounding Interest Investments?

Compounding interest investments is a very popular term that is used in investment while we are investing money. Compounding gives you more benefits if you invest for a very long time like a decade or two decades.

FDs, high-interest saving accounts, and bonds are some common types of investments that are safe and give you more return in the long term.

There are other ways to be present like mutual funds or stocks.

Now let us see some terms related to it.

Best Compound Interest Investments In India

  • Provident Funds
  • Mutual Funds
  • Bank Fixed Deposits
  • RBI Bonds
  • Post Office Bonds
  • RDs

Compound Interest Examples

Let’s say you invested 1000 bucks in a fund o in a fixed deposit then after one year, you get a return or interest in your investment. Let’s take it as 100 bucks, now your amount is 1100 bucks, so next year you got a return on 1100 bucks which is 110rs. So this is compounding where your return is reinvested to get more. In the long run, say 20 to 30 years, your invested money manifolds.

Compound Interest Formula

P + (1 + R/100)^n

P = Present Worth

R = Rate of Interest

n = Number of Years

Compound Interest Calculator


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