The difference between compound interest on regular investment and interest on fixed deposits

1.**The compounding effect is that your dividend method is reinvested instead of cash dividends.

2.The dividend method of dividend reinvestment is that when the dividend is divided, it can be converted into ** share to you without handling fees.

3.As for how many years you can earn it is difficult to say, depending on the general economic trend, in the bear market, you may also lose, is the investment is risky.

4.Whether you can make money or not, the key is to see what is the net worth when you redeem it?

1.Compound interest is calculated on a monthly basis, and interest is calculated once a year on fixed deposits. If it is a monthly deposit, it is the same as regular investment.

2.I have 1,000 yuan of spare money every month, if I set this money for 5 years every month, assuming that at the current interest rate, what will be my principal and interest in 5 years?

It is 69,341 yuan.

3.Or at 1000 yuan, the whole deposit is withdrawn for 5 years, and the current interest rate is, what is my principal and interest after 5 years?

If you save every month, then it is 66,081 yuan.

Explanation, this question and the above question are only different from the interest rate, since in question 2 you only calculate after 5 years, so whether you save money every month is set at 5 years, you can get 69341 after 5 years from now when you start calculating now.

4.I invested 1,000 yuan in the **5-year plan, and it seems that it is not written lower than 10% according to the calculation standard of the advertisement, so how much is it calculated?

It is 77,437 yuan at 10%.

Bank fixed deposits are not compound interest. Interest on fixed deposits is calculated on simple interest rates during the deposit period. For example, if someone has saved a two-year fixed term, the principal is 10,000 yuan, and the annual interest rate is, then after two years of maturity, the total interest is: 10,000 yuan.

Simple interest and compound interest can be converted to each other, but because it will be troublesome to use compound interest, so for the convenience of calculation, the interest rate announced by the bank is simple interest.

However, if the fixed deposit is renewed after maturity, the principal and interest of the previous deposit period will be transferred to the next deposit period, and the interest will be calculated according to the interest rate of the previous maturity date.

Further information: The interest rate of a fixed deposit refers to the rate of return paid by the bank to the depositor for the amount of the fixed deposit paid by the depositor in return for depositing the deposit in the bank in the form of a fixed deposit.

What are the fixed deposits:

1. Let the interest of the deposit and interest be regenerated into interest.

You can withdraw the interest on a deposit for the first year, and then open a savings account with a lump sum deposit and deposit the interest into it. In the future, the interest generated in the first account will be withdrawn every year and deposited into the zero deposit and withdrawal account. In this way, not only does the principal and interest savings receive interest, but also the interest is earned after participating in the lump sum deposit.

Small money is remitted into big money, and it can be deposited into principal and interest.

2. Deposit in batches and use it alive.

If you deposit a sum of money into several fixed periods of varying amounts, you can get regular interest and withdraw one or several of them when you use a certain amount. It can be a good way to avoid the large interest loss caused by converting all the deposits into current accounts. When there is a small amount of capital demand, only one of the fixed deposits can be withdrawn, so as to meet the demand for money, and the remaining funds can also maximize interest income.

3. Save every year.

Divide a sum of money into several savings and deposit them for different years, and each year there will be a certificate of deposit that matures. This fixed deposit method can be adjusted with the change of interest rate, and at the same time, it can be used to appreciate the high interest rate of the annual deposit.

4. Monthly storage.

Month-by-month storage is also known as the 12-certificate of deposit method, where a sum of money is deposited in the bank every month in a regular one-year manner, and it lasts for 12 months, and from the first month of the following year, you will get a corresponding regular income every month. At the end of the year, you will have 12 one-year fixed deposit certificates. From the second year onwards, a certificate of deposit will mature every month, and if there is an urgent need, it can be used without losing interest on the deposit; If there is no urgent need, these certificates of deposit can be automatically renewed, and from the second year onwards, the money to be deposited each month can be added to the certificate of deposit due in the current month, and a new certificate of deposit can be made to continue rolling the deposit.

Interest rates are divided into simple interest and compound interest rates:

Interest i=p*i*n, where i represents interest, i represents interest rate, and n represents the number of years of deposit. China uses the simple interest calculation method.

Simple interest method. Interest = Principal Interest Rate Term.

Compound interest method. (Used to calculate interest on automatic rollover).

f=p (1+i)n (power).

f: Compound interest terminal value.

p: Principal. i: Interest rate.

n: an integer multiple of the time the interest rate was obtained.

Interest rates are divided into simple interest and compound interest rates:

Interest i=p*i*n, where i represents interest, i represents interest rate, and n represents the number of years of deposit. China uses the simple interest calculation method.

Simple interest method. Interest = Principal Interest Rate Term.

Compound interest method. (Used to calculate interest on automatic rollover).

f=p (1+i)n (power).

f: Compound interest terminal value.

p: Principal. i: Interest rate.

n: an integer multiple of the time the interest rate was obtained.

Fixed deposits are calculated with simple interest.

If you want compound interest, you can apply for a rollover at maturity.

However, the corresponding interest rate is relatively low, and you have to calculate how to choose it.

Bank fixed deposits.

It is simple interest and interest-bearing.

However, at present, after the maturity of many banks, if the investment is not withdrawn at maturity, it will continue to rollover, and the principal and interest of the previous deposit period will be deposited into the next term when the rollover is made. Generally, how long is saved in the previous period and how long will it be saved in the next period, the second period is not matured and withdrawn, and the remaining time is calculated according to the current period, so this is also equivalent to compound interest.

Accrue interest. Formula for calculating regular interest.

Interest = Principal * Interest Rate * Deposit Term. For example, a deposit of 20,000 yuan, a three-year fixed interest rate.

Yes, if the investor does not withdraw after expiration, the principal will continue to be calculated according to 21,620 yuan.

Bank fixed deposits are simple interest if they are not rolled, and regular deposits are compound interest. Compound interest means that after each interest-bearing period, the interest accrued must be added to the principal to calculate the interest for the next period. In this way, in each interest-bearing period, the interest of the previous interest-bearing period will become the interest-bearing principal, which is often referred to as "rolling interest".

Time Savings Deposit is withdrawn at maturity according to the Certificate of Deposit.

The deposit rate on the account opening date.

Interest is calculated and paid, and interest is calculated according to the current savings deposit interest rate on the date of withdrawal for early withdrawal, and interest is calculated according to the interest rate of the current deposit on the day of withdrawal for overdue withdrawal. You can apply for a small pledge loan with your own fixed deposit certificate.

For unexpired fixed savings deposits, depositors must present the certificate of deposit and the depositor's identity certificate for early withdrawal; If the withdrawal is made on behalf of the depositor, the withdrawer must also hold his identity certificate, and the interest rate shall be calculated and paid according to the current savings deposit interest rate announced on the withdrawal date, and the withdrawer shall also sign the name of the withdrawer on the payment voucher. When the RMB unit fixed deposit is withdrawn at maturity, it will be deposited by the People's Bank of China on the date of deposit.

The interest rate of the corresponding grade of the fixed deposit is calculated and the interest is paid off with the principal, and the interest is not calculated in stages if the interest rate is adjusted during the deposit period.

If the deposit is not withdrawn on the maturity date, the interest on the current deposit will be automatically transferred to the principal, and the interest rate of the same grade announced by the People's Bank of China on the date of transfer and the original agreed deposit period will be automatically transferred. When the small foreign currency fixed deposit is withdrawn at maturity, the interest will be calculated according to the corresponding grade interest rate of the fixed deposit announced by the China Banking Association on the date of deposit.

Interest rates are divided into simple interest and compound interest rates:

Interest I=P*I*N, where i represents the interest on the shortfall, i represents the interest rate, and N represents the number of years of deposit. China uses the simple interest calculation method.

Simple interest method. Interest = Principal Interest Rate Term.

Compound interest method. (Used to calculate interest on automatic rollover).

f=p (1+i)n (power).

f: Compound interest terminal value.

p: Principal. i: Interest rate.

n: an integer multiple of the time the interest rate was obtained.

Strictly speaking, ** fixed investment.

It's not compound interest.

Investment, compound interest means to use the earned money as the principal to continue to invest in the key slippery capital to achieve rolling interest. **The compound interest refers to the effect of the change in net value, for example: you invest 100 yuan per day, and the first day of the regular investment is the net value of the day, assuming that the second day rises by 1%, then the **1% is increased on the basis of yesterday, so it is considered to be a copy of the stupid profit investment.

Extended Information:**Regular Investment:

**Automatic Investment Plan (AIP) is known as lazy financial management, and its value is due to Wall Street.

There is a popular saying: "It is more difficult to accurately step on the market than to catch a flying knife in the air." "If you adopt the batch ** method, you will overcome the defects of only choosing one point in time to buy and sell, and you can balance the cost and make yourself invincible in the investment, that is, the regular investment method.

Generally speaking, there are two types of investments, namely single investment and regular fixed amount. Due to **"Fixed-rated casting.

The starting point is low and the way is simple, so it is also called "small investment plan" or "lazy financial management". "Relative to regular investment, one-time investment income.

It can be high, but so is the risk. Due to the avoidance of the influence of investors' subjective judgment on the timing of entering the market, the risk of regular investment is significantly reduced compared with **investment or **single investment.

**Regular fixed investment has the characteristics of similar to long-term savings, which can accumulate a lot, spread the investment cost evenly, and reduce the overall risk. It has the function of automatically increasing the weight on dips and reducing the size on highs, no matter how the market changes, you can always get a relatively low average cost, so regular fixed investment can smooth out the net value.

peaks and troughs, eliminating the volatility of the market.

As long as there is an overall growth in the selection, investors will get a relatively average return, and they no longer have to worry about the timing of entering the market. It is difficult for ordinary investors to grasp the right time to invest in a timely manner, and it is often possible to sell at the market high** and sell at the market low. The use of **regular fixed investment method, no matter how the market fluctuates, a fixed day of fixed investment ** every month**, automatically deducted by the bank, and automatically calculate the number of shares that can be bought according to the **net value.

In this way, the funds purchased by investors are invested on schedule, and the cost of investment is relatively average.

For example, if you invest $100 in an open** every two months.

The number of shares that can be purchased each time is 100 shares, shares, shares, shares, shares and shares, and the cumulative number of shares is shares, then the average cost is 600 yuan, and the return on investment. is (

Certificates of Deposit. It's all simple interest.

If it is "about to be transferred", it is "agreed to roll over at maturity", and each time it expires, the interest will be returned to the principal, which can be regarded as a kind of compound interest.

It's not compounded every year, it's just compounded every period. For example: a three-year fixed deposit.

It is simple interest within three years, and after three years, if it is about transfer, then: after maturity, the interest of three years will be classified into the principal stool bridge, which is equivalent to compound interest for three years.

Extended Information:1Time deposits are also known as "certificates of deposit".

The bank and the depositor agree on the term and interest rate in advance at the time of deposit, and withdraw the principal and interest after maturity. Some CDs can be sold in the market before maturity when the depositor needs funds; Some certificates of deposit are non-transferable and require the depositor to pay a fee to the bank if he or she chooses to withdraw funds from the bank before maturity.

2.A type of bank deposit with a term that can range from 3 months to 5 years and more than 10 years. Generally speaking, the longer the deposit term, the higher the interest rate. Traditional fixed deposits are available in the form of certificates of deposit and passbooks.

The latter is also known as a passbook time deposit, but it is based on 90 days as the basic interest-bearing days, and no interest is accrued for less than 90 days. Compared with demand deposits, time deposits have stronger stability and operating costs.

Lower, the reserve requirement ratio held by commercial banks for this purpose.

It is also correspondingly lower, so the capital utilization rate of fixed deposits tends to be higher than that of demand deposits.

3.There are two types of fixed savings deposits: lump sum deposit, lump sum deposit, lump sum deposit and interest, and lump sum deposit and withdrawal.

4.Cash and current savings deposits can be directly applied for time savings deposits, and the minimum deposit amount for regular account opening is 50 yuan, and there is no limit to multi-slip balance deposits. The deposit period is 3 months, 6 months, 1 year, 2 years, 3 years, and 5 years.

You can withdraw part of the deposit in advance once, and when the deposit expires, you can withdraw the principal and interest with the certificate of deposit, or you can automatically transfer it multiple times according to the original deposit period. Interest shall be calculated and paid according to the deposit interest rate on the date of opening the certificate of deposit for withdrawal at maturity, and interest shall be calculated according to the interest rate of the current savings deposit on the date of withdrawal for early withdrawal. You can apply for a small pledge loan with your own fixed deposit certificate.

Interest rates are divided into simple interest and compound interest rates:

Interest i=p*i*n, where i represents interest, i represents interest rate, and n represents the number of years of deposit. China uses the simple interest calculation method.

Simple interest method. Interest = Principal Interest Rate Term.

Compound interest method. (Used to calculate interest on automatic rollover).

f=p (1+i)n (power).

f: Compound interest terminal value.

p: Principal. i: Interest rate.

n: an integer multiple of the time the interest rate was obtained.