Interest on fixed deposit is compounded _________.
Interest on fixed deposits is compounded Quarterly.
If the interest on fixed deposits is compounded quarterly, it means that the interest earned on the deposit is calculated and added to the principal amount every three months. This is known as quarterly compounding.
The advantage of quarterly compounding is that it can result in higher returns compared to simple interest, where interest is only calculated on the principal amount.
By compounding the interest, the returns on the fixed deposit can grow faster over time.