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.

A certain portion of the company’s profits is given to the government in the form of taxes. Apple may benefit from government programs or subsidies in some cases so part of these tax dollars may indirectly benefit the company. It would lead to a reduction in household spending and cause a decrease in GDP if businesses decided to produce less.

They want to hang on to their funds because they are unsure whether they can continue to earn the same level of income. I’ve also written about how the Circular Flow of Income Model helps us understand economic growth. Vaia is a globally recognized educational technology company,

India is witnessing a massive wave of consumption, driven by a growing middle class, increasing disposable incomes, rapid urbanization, and a digital-first mindset. With the country expected to become the world’s third-largest consumer market by 2030, investors are closely watching this trend. Its focus on technological improvements, product sustainability, and a versatile product line have given it an incredible brand presence globally and in the Indian market. 5paisa shall not be responsible for any unauthorized circulation, reproduction or distribution of this material or contents thereof to any unintended recipient. This article is prepared for assistance only and is not intended to be and must not alone be taken as the basis of an investment decision.