Things Just Got Real! A look at Compound Interest
There are multiple ways to grow your money to help with that savings for the future. Have you heard about compound interest? Learn today how compound interest is a great option to make your money work harder for you!
Did you know that money kept in a savings account will earn more by growing at a specific rate?
That’s right, $1,000 at an annual dividend rate of 5% will grow to $1,050 in its first year.
But here’s where things get interesting.
An account that compounds its earnings will earn on the earnings, too! That means the $50 from the first year will also grow at a 5% rate the next year.
So, your $1,000 that turned into $1,050 will now turn into $1,102.50!
It’s like getting paid, just for keeping your money at the credit union!
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