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What is Compound Interest?

26th May 2025

Investing might sound complicated, but you don't need to be wealthy or have a finance degree. Understanding compound interest can be your first step to making your money grow. So, what is compound interest exactly?

Compound interest is when you earn interest on your money and then earn more on that previously accumulated interest.

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Representative Example: £200 loan for 6 months at a fixed interest rate of 290% pa. Total amount payable is £355.99 in monthly instalments of £65.11, £78.35, £64.05, £58.76, £48.16 and £41.56. This is based on the amount of credit plus interest, no other fees apply. Representative 1266.2% APR

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What is Compound Interest?

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