The Benefits of Compounding
Growth upon growth strengthens savings
How interest is calculated has a significant impact on how much your account earns and how your savings grow. Compound interest exists when interest added to the principal also earns interest. You’ll see your balance grow quicker in accounts that pay interest more frequently. The Annual Percentage Yield (APY) is the effective annual rate of return once the effect of compounding interest is factored in. This calculator shows the power of compound interest.