Periodic deposit
Periodic deposit is the investment made in form of equal deposits over a time period regularly. Each deposit recurs after a time interval. Such an investment is made to achieve a pre-planned financial objective and/or when the capital to invest is less.
In simpler words, Periodic Deposit is a deposit recurring on a periodic basis. Investment is made over the period; grows over the period and matures at the end of the period.
Real World Example
![](../I/m/Periodic_deposit.png)
Periodic Deposit Performance Chart based on Real World Example
John is planning investment for his retirement. He has decided to invest an amount of 150.00 USD per pay check over a period of 30 years. He receives his pay check twice every month. The interest rate expected is 10.00% per annum with quarterly compounding.
Investment
Starting Amount | Deposit Mode | Periodic Amount | Period | Interest Rate | Compounding |
---|---|---|---|---|---|
0.00 USD | SemiMonthly | 150.00 USD | 30 Year | 10.00% | Quarterly |
*All deposits made at start of the period
Returns
Invested Amount | Interest Accrued | Maturity Amount | Gain |
---|---|---|---|
108,000.00 USD | 562,498.37 USD | 670,498.37 USD | 520.83% |
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See also
- Finance
- Interest
- Rate of return on investment
- Real interest rate
- Single deposit
References
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