Grow Your Money with Compounding Interest

Understanding compounding interest is important for planning for retirement. Compounding interest helps your money grow over time, which means that a dollar put in savings today is worth more than a dollar saved later because it has time to build interest and grow. 

 

What is compounding interest?

Compounding interest is when your money grows not just on what you put in initially, called principal, but also on the interest it earns over time, leading to bigger savings in the long run. It’s like a snowball rolling downhill—over time, the snowball gets bigger the longer it rolls. 

 

Tips to build compounding interest

Here’s what you should know about compounding interest: 

  • Start Saving Early: Even a small amount of savings can grow a lot over time due to compounding interest, so it’s important to start saving early. 
  • Keep Your Money Invested Long-term: The longer your money stays in an interest-bearing investment account, the more it benefits from compounding interest and the more it grows. 
  • Be Patient: Be patient and let compounding interest add money to your account. If you want your account to grow faster, contribute a little each month or whenever you can. 

See how your money can grow with compounding interest using the Compounding Interest Calculator. 

*Calculations are based on the average market return of 7% and are not a guarantee of return on investment. All investments carry risk. This figure is for informational purposes, only. Talk to a financial professional for more information.

 

Can compounding interest help me save more with my Secure Retirement Plan account?

For every qualified hour you work as a caregiver, your contributing SRP employer adds up to $1.20* to your SRP retirement account. As you work more, your employer contributes to your account more.  

With your money invested in the SRP, you get the benefit of compounding interest adding to your retirement account balance until you are ready to take your money out.  

To estimate how much money you may have in your SRP account when you retire, login to Retirement: My Plan to use the retirement calculator made specifically for caregivers like you.

*Employer contributions to the Secure Retirement Plan (SRP) increased to $1.20 on July 1, 2024.
 

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Caregiver Learning Center System Maintenance

June 6 (Thursday) – June 10 (Monday)

You can log in, enroll and take your training in the Caregiver Learning Center during this time. 

If you complete training during the System Maintenance, it will be sent to your employer after June 10. 

Please contact your employer if you have questions about your training requirement, deadline or payment.