Compound Interest Investments
The Power of Compound Interest shows how you can really put your money to work and watch it grow.
When you earn interest on savings, that interest then earns interest on itself and this amount is compounded monthly. The higher the interest, the more your money grows!
If you saved $200 each month, after 35 years, your money would have only grown to $148,680 at a three percent interest rate.
At a six percent interest rate, it would have grown to $286,370.
If you received a 12 percent interest rate on your savings, your money would have grown to $1.3 million!
The sooner you start to save, the greater the benefit of compound interest.
Rates of return are constant nominal rates, compounded monthly. Actual investments will fluctuate in value. Contributions are assumed to be made at the beginning of the month. The chart above is hypothetical and is not intended to represent any particular investment or savings vehicle. It does not take into consideration taxes or other applicable deductions, which will lower returns.