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Earn compound interest on your savings

File photo. Picture Credit: iStock
File photo. Picture Credit: iStock

The value of compound interest is not in saving vast amounts – instead, it’s all about when you start saving. And the earlier you start saving, the more interest you will earn.

When you put your cash into an Absa savings and investment product, it will grow on its own.  The amount of interest paid is calculated on the balance in your account which means you earn interest on the interest you have already been paid.

Saving even a few rands in a disciplined way every month might not seem like much, but if done consistently it could make a big difference in your financial future.

“Compound interest can turn just a few rands today into big money over the course of a lifetime. To make it work for you, it is crucial to stay fully invested and to keep reinvesting any interest. This way, compounding can do its magic on your money too.” says Matt Hunter, Head of Savings and Investments at Absa Retail Banking.

To find out how you can reap the benefits of compound interest, contact Absa Savings and Investments on 0860 111 515 or go to www.absa.co.za.

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