If you’re looking to maximise the return on your investment, daily compounding can offer you better returns. As more compounding results in a higher power of compounding, the higher will be the returns from your compound interest. In daily compounding, the interest earnings are calculated and reinvested every day. This is because the higher the number of times interest is compounded, the higher the return on your investment. The Indian Government has annualised the interest rates on national Savings Certificates to streamline the deposit rates. It’s best to use a reliable online compound interest calculator like Moneyfy’s to determine how well your savings schemes work now.

The effect of inflation can be mitigated by putting money into investment avenues that pay compound interest.