CompoundInterest means that when calculating interest, the principal is added to the total interest accumulated in the previous period to calculate the interest in a certain interest period, which is also commonly known as "earning interest" and "rolling interest".
When calculating compound interest, we should pay attention to whether it is annual compound interest or daily compound interest, and daily compound interest should earn more interest income. At the same time, the more principal users deposit, the more interest they get. Then pay attention to whether the rate of return will change during the deposit period. Users can make time deposits or demand deposits, in which time deposits can earn more interest, but time deposits will not be calculated according to compound interest, so they will settle interest after maturity, so their flexibility is poor: demand deposits are more flexible, but deposits earn less interest. When you deposit money in the bank, you should generally use your own spare money, and never borrow money to deposit it. Moreover, when handling deposits, you can compare the interest rates given by different banks, and then choose deposits with high interest rates. It should be noted that time deposits can be withdrawn in advance, but the interest needs to be calculated according to the current interest rate.