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. The periodic deposit simulator
simulates the trend of such an investment.
The effect of interest compounding can be seen in form of the exponential returns curve in the chart. The deposits is represented by the linear investment curve. The following fine-tuned simulators represent the trend of the periodic deposit investment for various conditions.
This simulator represents a standard periodic deposit investment without any tweaks.
Click here to try out the simulator.
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.
| Starting Amount | Deposit Mode | Periodic Amount | Period | Interest Rate | Compounding | Deposit At | | 0.00 USD | SemiMonthly | 150.00 USD | 30 Year | 10.00 % | Quarterly | Start of the period |
Click here  to see John's retirement account value after 30 years.
This simulator represents the effect of various interest rates on the periodic deposit investment.
Click here to try out the simulator.
Example: Rishi needs to plan for his son’s education by investing 2,500.00 INR at the start of each month. He would need the funds after 15 years. He needs to compare different investment options available to him. He figured out that a bank savings account would yield him 4.00 %; 7.00 % from a public provident fund account; 8.50 % from a bank recurring account; 9.50 % from bank fixed deposits and 15.00 % from mutual funds. His investment remains the same, though the risk varies depending upon the investment option he chooses and so does the returns.
| Starting Amount | Deposit Mode | Periodic Amount | Period | Interest Rate | Compounding | Deposit At | | 0.00 INR | Monthly | 2,500.00 INR | 15 Year | 4.00 %
7.00 %
8.50 %
9.50 %
15.00 % | Annually | Start of the period |
Click here to see Rishi's findings.
This simulator represents the effect of various compounding periods on the periodic deposit investment.
Click here to try out the simulator.
Example: Michelle is studying the returns obtained by weekly investing 75.00 EUR for 8 years with different banks. These banks offer the same interest rate of 4.50 % but with different compounding periods, mostly annually, quarterly, monthly, weekly and daily.
| Starting Amount | Deposit Mode | Periodic Amount | Period | Interest Rate | Compounding | Deposit At | | 0.00 EUR | Weekly | 75.00 EUR | 8 Year | 4.50 % | Annually
Quarterly
Monthly
Weekly
Daily | Start of the period |
Click here to see Michelle's observation.
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