Savings Planner

How Compound Interest Works

Compound interest is interest earned on both the principal amount and the accumulated interest. This creates exponential growth over time, making it a powerful tool for wealth building.

Key Factors

• Principal: Initial amount invested
• Rate: Annual interest rate
• Time: Duration of investment
• Frequency: How often interest is compounded

Tips for Better Savings

• Start saving early to maximize compound growth
• Increase monthly contributions when possible
• Look for higher interest rates
• Set realistic but challenging goals