FinanceTools

Savings Guide

How Compound Interest Grows Savings

Compound interest allows your money to grow faster because you earn interest not only on your initial investment but also on previously earned interest.

What is compound interest?

Compound interest means that each year your interest is added to your total, and the next year you earn interest on that larger amount.

Why time is important

The longer your money stays invested, the more powerful compounding becomes. Time is one of the most important factors in growing savings.

Impact of interest rate

Even small increases in interest rate can significantly increase your future value over long periods.

Try the savings calculator

Use the savings calculator to see how your money grows with different interest rates and time periods.

Open Savings Calculator