What is a compound interest account?

A compound interest account is any account that lets you earn interest or some other return to grow your savings. You could open a compound interest account with a bank, or you could also open a compound interest account with an investment broker. Here’s how it’s done.

How does compound interest work in a UK savings account?

If you make deposits into a UK compound interest savings account where interest is paid annually, you’ll keep earning interest on each previous year’s interest. This means that if the rate of interest stays the same, you’ll earn more from your savings every year with your interest compounds.

How do you earn compound interest?

The more frequently interest compounds, the more room your money has to grow. The best way to earn compound interest is by saving or investing your money in a compound interest account or an account that earns compound interest. Examples of compound interest accounts include: