What it means
Earning returns on your original money and on the returns already earned, so savings grow faster over time.
Saving & Investing
Compound Interest
Earning returns on your original money and on the returns already earned, so savings grow faster over time.
CategorySaving & Investing
Pro tip inside1 quick win
What “Compound Interest” really means
The meaning, how it works in the UAE, and why it matters to your money.
How it works in the UAE
Compound interest means you earn returns on your money and on the returns already earned, so growth speeds up over time.
Why it matters
Starting early matters more than starting big.
EXAMPLE
AED 10,000 at 5% a year becomes about AED 16,300 in 10 years.
PRO TIPReinvest returns and leave savings untouched to let compounding work.
Test yourself
Which of these best describes Compound Interest? Tap an answer.
Read more about Compound Interest
Guides that use this term — and a tool to put it into practice.
