The power of compounding
Calculate how much your money will be worth in the future with compounding interest. You can select yearly or monthly compounding intervals, and add regular contributions to see how your savings can grow over time.
Compound interest is when the interest is added to the principal amount instead of being paid out, so the interest generated in the next period will be on the principal amount plus any accumulated interest.
The accumulative effect can be very powerful over a number of years!
Example:
If you have £1,000 and 5% annual interest, and you reinvest the interest every year, after 3 years you will have £1,157.63. That's a 15.7% increase!