A Simple Demonstration of the Power of Compound Interest

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Albert Einstein famously said that compound interest is the 8th wonder of the world, but its power is difficult to grasp. So, to give a simple visual demonstration, I'll double the amount of "c"s each time one is used in just three short sentences below. Imagine that each "c" is one cent deposited in a compounding savings account:


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As you can see, compound interest makes a lot of cents. Imagine what it does with dollars.* 

Check out how compound interest works by visiting our savings and retirement calculators here:

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*Note that the number of compounding periods per year will affect the total earned on an investment. “Compound interest” is a commonly used phrase to indicate the accrual of funds by a compounding process, though at credit unions the accruals by this process are dividends.

Please contact Logix at (800) 328-5328 or visit www.lfcu.com if you have any questions about this topic or would like to consider opening an account.

Meet the blogger

Brad Blue

Brad Blue

Brad Blue is the proud VP of Digital Marketing for Logix, and loves working for a credit union because he’s passionate about cooperative, not-for-profit banking. Brad joined Lockheed FCU in 2012, where he assisted in the development of the new Logix brand and website. He has spent over 18 years working with credit unions, and becomes more passionate each day about moving the industry forward with innovations in digital marketing and omnichannel member service. Originally from Colorado, he now lives in Ventura, CA with his wife and two kids, and together they all find lots of fun things to do in their lovely little oceanside town.