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What is compound interest? | Fidelity Compounding lets your interest and returns earn interest and returns of their own Money invested in the stock market and in savings accounts may benefit from compounding Thanks to its potential to grow savings over time, the idea of compounding is what motivates many people to start investing
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Compound Interest Compounding Examples | Britannica Money Compounding means getting returns on your previous returns as well as your initial investment Compounded interest can power your returns over time, especially if you have patience The earlier your money starts compounding, the more pronounced the effect will be
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What Is Compounding? An Explanation of Compound Interest - Stash Compound interest is what happens when the interest you earn starts earning interest itself Unlike simple interest, which only earns interest on the initial principal (the money you start with), compound interest allows the interest you’ve already earned to generate even more interest