What Is Compound Interest | FrenlyFi

Compound interest is interest accumulated from a principal sum and previously accumulated interest, resulting from reinvesting or retaining interest that would otherwise be paid out. This financial concept is crucial in understanding how investments grow over time, and is often discussed in relation to [[personal-finance|personal finance]] and [[investing|investing]] strategies. The power of compound interest can be seen in its ability to grow wealth over time. With the rise of online banking and [[fintech|fintech]] platforms, compound interest has become more accessible and easier to manage for individuals and businesses alike.