You might have heard people use the term compound interest, but if you can’t answer the question “What is compound interest?” then you’re missing out on how compound interest affects your finances.

What these two processes share is baked into the math of each. In fact, in that respect, they're nearly identical. They both involve some stuff (atoms or money) that is either growing or shrinking.

Interest can be charged when you borrow money or earned when you save. When you charge something on a credit card or take out ...

Interest is the amount of money you must pay to borrow money in addition to the loan's principal. It's also the amount you are paid over time when you deposit money in a savings account or certificate ...

Earning interest remains one of the cornerstones of investing and lets you earn passive income by putting your money into interest-bearing securities or accounts. Compound interest allows you to ...

Compound interest grows by reinvesting earnings, creating larger interest over time. Increasing compounding frequency (e.g., monthly) can significantly accelerate investment growth. Compound earnings ...

See how your savings and investment account balances can grow with the magic of compound interest. Many, or all, of the products featured on this page are from our advertising partners who compensate ...

Compound interest is commonly described as "interest earned on interest." Compound interest can work to your advantage as your investments grow over time, but against you if you're paying off debt, ...