Periodic deposit

This article does not cite any sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.
Find sources: "Periodic deposit" – news · newspapers · books · scholar · JSTOR (July 2018) (Learn how and when to remove this message)

|

A periodic deposit is an investment made in the form of equal deposits over a regular time period. Each deposit recurs after a time interval. Such an investment is made to achieve a pre-planned financial objective and/or when the available capital to invest is limited.

In simpler words, periodic deposit is a deposit recurring on a periodic basis. Investments are made over the period, grow over the period and mature at the end of the period.

## Real world example

[edit]

Periodic deposit performance chart based on real world example

John is planning investments for his retirement. He has decided to invest an amount of US$150.00 per pay check over a period of 30 years. He receives his pay check twice every month. The interest rate expected is 10% per annum with quarterly compounding.

Investment

Starting amount  | Deposit mode  | Periodic amount  | Period  | Interest rate  | Compounding

|
|
|
|
|

US$0.00  | Semi-monthly  | US$150.00  | 30 year  | 10%  | Quarterly

*All deposits made at start of the period

Returns

Invested amount  | Interest accrued  | Maturity amount  | Gain

|
|
|

US$108,000.00  | US$562,498.37  | US$670,498.37  | 520.83%

## See also

[edit]

* Finance
* Interest
* Rate of return on investment
* Real interest rate
* Single deposit

## References

[edit]

This finance-related article is a stub. You can help Wikipedia by expanding it.

|

* v
* t
* e

*[v]: View this template
*[t]: Discuss this template
*[e]: Edit this template