Best Compound Interest Investments | Bankrate
You’ve heard about it often enough, most likely when choosing a 401(k) investment, but compound interest can multiply your money. The name of the game with compound interest is time, and the more of it you have, the bigger the payoff. That means if you’re a short-term investor, or looking to stay mostly liquid, then this strategy is most likely not best-suited for you.
What is compound interest?
Compound interest is the interest you earn on interest. In short, you make an initial investment and receive a particular rate of return your first year which then multiplies year over year depending on the interest rate received.
Let’s say you make a $100 investment and receive a 7 percent rate of return in your…
