Video - Money: Know It to Grow It - Compound Interest

Transcript:

Compound interest is when you earn interest on top of existing interest.

Let's say you have a piggy bank with $10 in it.

And each year, the money earns 10% in interest.

In the first year, you would get $1, because 10% of $10 is $1 - for a total of $11.
Next year, you will now get 10% of the new piggy bank total...

...bringing your bank total to $12.10.

If you keep compounding the money at 10%, your original money can double in just over 7 years!

And that will double again in another 7 years…

- and so on, and so on…

Even Albert Einstein was awed by the power of compound interest!

Just wonder what it could do for you.

So that's compound interest. Find more ways to know and grow your money at synchronybank.com.

READ MORE: Video - Money: Know It to Grow It - Inflation