By Geneva Verdeja on Tuesday, May 9th, 2023
Category: Blog

Things Just Got Real! A look at Compound Interest

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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!