Anonymous
Anonymous asked in Business & FinanceInvesting · 12 months ago

What investment has compound interest?

Like where do I invest my money in for it to grow with compound interest?

I remember learning about compound interest in high school well more so the way it grows compared to where I actually invest in which is probably what you learn in some finance/business classes in university... so yeah please help!

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  • 12 months ago
    Favorite Answer

    Hello

    "Compound interest"... Savings, Checking, CDs & Some bonds earn compound interest

    All the best

  • 12 months ago

    Pension funds also.

  • Anonymous
    12 months ago

    High yield savings accounts for safety is best in my opinion

  • 12 months ago

    No investments have compound interest. In fact, investments don't have "interest" at all. If it has interest it isn't an investment. it's a deposit account or a bond.

    You've heard the phrase "the value of investments can go down as well as up"?

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  • 12 months ago

    The rates are quite low, but that's your standard savings account or CD.

    If you use an indexed fund though, and have enough time to wait, the stock market has traditionally done far better in the long run.

  • Judy
    Lv 7
    12 months ago

    CD, savings account. Interest currently is so low that even compounded, doesn't pay a lot.

  • Anonymous
    12 months ago

    Any stock or fund with dividends so you can do dividend reinvestment.

  • GA41
    Lv 7
    12 months ago

    Any investment that pays a periodic interest against the principle. If you invest 100 at 10% annually. The first year you earn $10. If you leave your $110 dollars in the bank, the next year you will earn $11.00. The compounding effect is that in subsequent years you get paid interest on the previous interest earned.

    You get this in a savings account or in a certificate of deposit as long as you re-invest the interest you earned. If you don't re-invest the interest earned, then the interest effect is not "compounded".

    For example, If the $100 initially invested at 10% earned $10.00 and you spend the $10.00, then the next year you earn only $10.00 instead of the $11.00 payment you would have earned if you re-invested the $10.00.

  • Never
    Lv 7
    12 months ago

    S&P 500 index fund. Need a 30+ year outlook.

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