What is compounding?

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By Personal Investing Team

17 Jun 2018

Albert Einstein is said to have called the power of compound interest “the most powerful force in the universe” and went on to say..."he who understands it earns it; he who doesn't pays it."

 

In this short video, we explain how compounding works, and why it can be so powerful in helping you to grow your savings over the longer term. 

 

Please note the information, data and any references in this article were accurate at the time of writing. Please check the date of the content if you’re looking for up to date investment commentary or tax-year related information.

 

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Risk warning

Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest . Tax rules for ISAs may change in the future and their tax advantages depend on your individual circumstances.

Please note the information, data and any references in this article were accurate at the time of writing. Please check the date of the content if you’re looking for up to date investment commentary or tax-year related information.