Based on this formula FV = PV ( 1 + i ) ^ n. For those of you who are mathematically inclined, you can take the limit of this function as n approaches infinity and the number would end up as e (engineers should know this).

ie. lim (1+i) ^ n = e (for i<1)
n -> oo

So, actually even if the banks want to compound to the second, the difference is not much...

It has been a long while since I practise my math, so I could still be wrong.. Someone please verify.

Thank you.