In simple terms, compound interest allows your money to start growing on its own as time passes by. And while it might be easy to understand what compound interest is, the actual application of it can be tricky. But one of the main points to keep in mind is that the rate of compounding in your savings account doesn’t make much difference if the interest rates remain low. Also, keep in mind that there are no such thing as stable and secure investments that offer a steady high-interest rate of compounding. Remember, higher returns require more risk and volatility.
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