Compound Interests
How big a deal is compound interests? Can I double my savings in 10 years time without doing anything with it? Based on the current CIMB Bank Berhad Fixed Deposit interest rate (16 June 2016), by using a Compound Interest Calculator, I had calculated how much would I get in return after 10 years based on an initial RM10,000 deposit, no addition and varying the tenures of FD maturity. From the table below, it's clear that you cannot double your saving in 10 years time due to current low interest rates. You will need at least 7% to 8% per annum of interest rate to double your savings using compound interests. Tenure 1mth 2mths 3mths 6mths 12mths Interest Rate 3.15% 3.25% 3.30% 3.40% 3.70% Total Principal after 10 years 13,696.94 13,828.17 13,890.86 14,009.38 14,380.95 Interest Gain ($) 3,696.94 3,828.17 3,890.86 4,009.38 4,380.95 Interest Gain (%) 36.97% 38.28% 38.91% 40.09%