When you get regular interest payments, that interest adds to the amount in the account so every interest payment your total interest paid increases. You can snowball this into a sizable figure with time, it pays more per year the longer you do it due to the snowballing. Especially if you find good interest rates and regularly review them
Essentially any account/financial product that pays interest into the account is compounding. Good interest rate accounts will vary on your country/area. Start by comparing savings account interest rates between your local banks and seeing if there are any special things you have to do to get the best rate. For example here with some banks they will pay an extra few % if you don’t lower your savings account balance that month
Thats some nice info, but it doesn’t explain what compound interest is.
When you get regular interest payments, that interest adds to the amount in the account so every interest payment your total interest paid increases. You can snowball this into a sizable figure with time, it pays more per year the longer you do it due to the snowballing. Especially if you find good interest rates and regularly review them
And where are these good interest rates and compounding services?
Essentially any account/financial product that pays interest into the account is compounding. Good interest rate accounts will vary on your country/area. Start by comparing savings account interest rates between your local banks and seeing if there are any special things you have to do to get the best rate. For example here with some banks they will pay an extra few % if you don’t lower your savings account balance that month