Your Moneymaker: The Beauty of Compounding

Money in a piggy bank is simply hoarding – not particularly useful for building wealth.  Simple interest provides a fixed return on a given investment.  This is better, since your money earns something.  The sexiest of options, though, is compounded interest.

Compounding is what can make CDs, money markets, bonds, and reinvested stock and mutual fund dividends very powerful tools for building wealth over time.   Investopedia created a short, clear video that intuitively explains the beauty of compounding.