Banks and funds have so-called compound interest investments. The bank currently has an automatic transfer business for time deposits upon maturity. For example, if 500 yuan is fixed for one year, the interest rate at maturity is about 16 yuan. On the maturity date, the bank will transfer the principal and interest of 516 yuan to another fixed period for another year. When it expires in the next year, the bank will transfer the principal and interest to the deposit. If you continue like this for a year, you can enjoy the effects of compound interest. Funds also have a compound interest effect. For example, currency funds transfer income to your account every month. This continuous reinvestment of income is also a manifestation of compound interest. There are two other types of fund dividend distribution methods. After investment is available, change the dividend method to dividend reinvestment, so that when the fund pays dividends, the dividends can be converted into fund shares for free. When the net value of the fund rises, the free fund shares will bring you higher returns. Fixed investment funds also have the effect of compound interest. If the fixed investment income is 5% in the first year, this 5% income will be transferred to the fund shares in the second year. When the net value of the fund rises, the income will be higher. In the 3rd year, the 4th year, the 5th year - if there is a rate of return, the income will continue to expand. Because fixed investment funds are long-term investments. There may be short-term shocks and declines, but long-term fixed investment will have a certain compound interest and return on investment.