Savings

Compound interest is interest calculated on both the initial principal and accumulated interest. Money grows faster than with simple interest because you earn interest on interest.

More frequent compounding (daily vs monthly vs yearly) results in higher returns. Daily compounding at 5% yields slightly more than monthly compounding at the same rate.

The Rule of 72 estimates how long it takes to double your money. Divide 72 by the interest rate. At 6% interest, money doubles in approximately 12 years (72÷6=12).