The gentleman shown above has his dollars working for him. This is not a new concept. In fact, you can find historical references to compound interest from around the world.
The key step in using compound interest is to actually start saving. You don't have to save a lot – just save what you can. Compound interest will do the rest of the work for you.
It's important to get a competitive rate (or APY) for compound interest to work for you. You don't need to earn the best rate on the planet, but you should earn a competitive rate. A good place to find rates and accounts is on our online banking page.
If you want to skip the example and just see what your savings will generate, run the numbers in our compound interest calculator. For the rest of this example with pictures, read on.