See exactly how your money grows over time with the power of compounding.
Albert Einstein reportedly called compound interest the eighth wonder of the world. When you earn interest on your interest, your money grows exponentially rather than linearly. The longer you stay invested, the more dramatic the effect becomes.
Someone who invests $10,000 at age 25 at 7% annual growth will have approximately $149,745 by age 65 — without adding a single dollar. Wait until 35 to invest the same amount and you'll only have $76,123. That 10-year head start nearly doubles the final balance.
The more frequently interest compounds, the more you earn. Daily compounding earns slightly more than monthly, which earns more than annually. For most savings accounts and investments, monthly compounding is standard.
For informational and educational purposes only. Past investment returns do not guarantee future results. Not investment advice.