How compound growth works
Each month, interest is added to your balance and your contribution is deposited. The next month, interest is earned on that larger balance. The chart shows how, over time, interest makes up a growing share of the total.
Getting the most from compounding
- Start early: time is the biggest driver of growth.
- Contribute regularly: small monthly amounts add up, and each one starts compounding right away.
- Mind tax and fees: DIRT on deposit interest and fees on investments both reduce what compounds, so compare returns after tax.