Yeah its compounding but its not keeping up with inflation. I cant make you invest within stocks but consider going to www.treasurydirect. gov and obtain an inflation protected I-Saving bonds account.

Best of luck. Take Care

Of course it is.

Compounding is the effect on earning interest on the interest you earn...

On a term deposit that pays monthly interest, is it necessary not to withdraw profit amount and leave it in the bank for compounding to work? If profit withdrawn each month, what we'll get would be simple interest instead of compound interest?