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Savings Bond

On a fixed Bond, does the saving compound each month (or year) - interest paid on top of interest added to initial deposited amount?

But not if you want to take the interest payment out into your designated bank?

All depends on the bank I presume.

Comments

  • Josquin
    Josquin Posts: 130 Forumite
    Seventh Anniversary 100 Posts Name Dropper
    edited 20 July 2022 at 8:57AM
    Not if you are taking interest out, because you are taking the money out of the bank is the answer I think.
  • Eco_Miser
    Eco_Miser Posts: 5,064 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If you take the interest out, there's no interest to compound.
    If you leave it in, it is usually (but not always) added once a year, and earns interest on interest from that point on.
    Eco Miser
    Saving money for well over half a century
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