What best describes what an opportunity cost is?

What best describes what an opportunity cost is?

Opportunity cost: The loss of a potential gain from other alternatives when ones alternate is chosen!

Is daily compounding better than monthly?

What’s Better for Your Savings, Interest Compounded Daily or Monthly? Between compounding interest on a daily or monthly basis, daily compounding gives a higher yield – although the difference could be small.

Which type of savings account will earn you the most money?

High-yield savings accounts are a type of savings account, complete with FDIC protection, which earn a higher interest rate than a standard savings account. The reason that it earns more money is that it usually requires a larger initial deposit, and access to the account is limited.

How can I get 5% interest on my money?

There are two companies – Insight and Netspend – that offer prepaid debit cards that also come with FDIC insured savings accounts that earn 5% interest. They take some work to set up, but once you go through that process, the accounts run themselves.

Is FD a good option?

1. Safety: An FD is a relatively safe investment option. Market fluctuations do not impact the locked-in interest rate. However, Liquid funds can provide similar if not better, level of safety and returns.

Do banks give interest every month?

3. All banks charge interest on all their loans and advances at monthly intervals, which means the interest earned by them gets compounded every month, where as the interest paid on all deposits is compounded at quarterly intervals.

How do banks earn monthly interest?

1. Bank Fixed Deposits or Bank FDs.
2. Post Office Monthly Income Scheme or Post Office MIS.
3. The Monthly Income Scheme (MIS) offered by Department of Posts currently offers an interest rate of 7.3 per cent per annum, payable monthly.
4. Pradhan Mantri Vaya Vandana Yojana (PMVVY)
5. Senior Citizen Savings Scheme.

What is the interest of 1 lakh in SBI?

Interest Rates on Savings Bank Deposits

Savings Bank deposit slabs	Existing Rate of Interest
SB Deposit accounts with balances upto Rs. 1 lakh	2.75% p.a
SB Deposit accounts with balances above Rs. 1 lakh	i) 2.75% p.a. for balance upto Rs. 1 lakh ii) 2.75% p.a. for balance above Rs. 1 lakh.

Which is the best monthly income plan?

6 Best Monthly Income Schemes In India

• Fixed Deposit. Undoubtedly one of the best and most low-risk income schemes is a bank Fixed Deposit (FD).
• Post Office Monthly Income Scheme (POMIS)
• Long-term Government Bond.
• Corporate Deposits.
• SWP from Mutual Funds.
• Senior Citizen Saving Scheme.