Simple vs Compound Interest
See how compounding makes your money grow faster over time compared to simple interest.
| Year | Total with Simple Interest | Total with Compound Interest |
|---|
Understanding Interest Growth
Simple Interest grows at a fixed rate each year — you earn interest only on your original deposit.
Compound Interest grows faster because each year’s interest is added to your balance and earns interest itself.
Over time, this “interest on interest” effect can dramatically increase your total return, especially with higher rates and longer terms.