Looking to get more out of your savings?
Then familiarize yourself with compound interest, a concept that can help your principal, or your starting amount, grow not only before your eyes, but while you work, sleep, and play.
Simply put, compound interest gives you interest on your principal, as well as interest on your earned interest.
You can also benefit from increasing the number of compounding periods, or compounding. For example, $100 compounded at 10% annually for 5 years will grow to $161.05; $100 compounded at 10% semi-annually over the same period grows to $162.89.