How compound interest works

MoneySmart, the financial literacy website produced by Australian Government regulator ASIC have produced this brief video to explain how compound interest works.

Compound interest is an essential base concept to understand before investing. So if you don’t understand it then I recommend you spend one minute watching this video. Then please share in the comments below – did the video help you understand?


Author: Matt Hern

Certified Financial Planner professional, Matt Hern has three times been awarded as one of Australia's Top 50 Financial Planners by The Australian Financial Review Smart Investor. He is passionate about guiding you on the right financial choices to achieve what you really want. Matt Hern is an Authorised Representative of Charter Financial Planning Limited AFSL 234665. All information is general advice only.

One thought on “How compound interest works”

  1. A very simple explanation… although not very realistic looking…

    Who gives 10% interest these days.. and the money growth does not look soo exponential in real time.. it looks highly unbelievable.

    You know the saying in finance.. if it sounds too good to be true.. it probably is…:)

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