Compound interest is interest earned on both principal and accumulated returns. It applies to savings accounts, glacier bancorp forecast bonds, and stocks.
## How compounding works
– Start with $1,000 at 5% interest.
– Over decades, small contributions snowball.
– Reinvesting dividends from companies like Apple, Microsoft, or Coca-Cola accelerates growth.
## Real-world examples
– Warren Buffett built his fortune by compounding.
– Compounding average returns of ~7–10%.
– Even small savings accounts demonstrate the principle.
## Benefits of compounding
– The earlier you start, the bigger the effect.
– Turns modest sums into large amounts.
– Works automatically.
**Conclusion**
Compound interest is proof that time in the market beats timing the market. Whether through dividends, bonds, or index funds, compounding creates wealth.
