Do you look at your checking or savings account month after month and think, “Why is my money just sitting there? Shouldn’t it be doing something for me?” The correct answer is yes, your money should be doing something besides sitting in your checking account. Perhaps it is time to move your money to an account that features compound interest.
But what exactly is compound interest? Compound interest arises when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. This allows your checking or savings account to grow faster than simple interest, which is calculated only from the principal amount.
Accounts can be compounded annually, semi-annually, quarterly, monthly, daily or continuously. The more frequently this interest is added to the principal the faster it grows, and the higher the principal amount will be each time it is compounded. This allows your money to grow without you having to deposit more money into your account, and puts you in better financial shape for the future.
At Security State Bank, we have a variety of accounts that feature compound interest. Our Super N.O.W Checking Accounts have their interest compounded monthly and added to the account each month. Our Money Market Deposit Accounts also have interest compounded and added to the account monthly.
For savings accounts, our Regular Savings and Friendship Club Savings Accounts get interest compounded semi-annually, and our Christmas Club Accounts are compounded monthly.
Having your money in a checking and/or savings account with compounding interest is an easy way to make your money grow on its own. Come by one of our branch locations to see how Security State Bank can help your money work for you today!