What compound frequency should I use?
Monthly compounding is most common for savings accounts and investments. Daily compounding offers slightly higher returns but the difference is minimal.
What's a realistic interest rate?
High-yield savings accounts offer 4-5%. Stock market index funds have historically returned 7-10% annually over long periods.
What is the Rule of 72?
Divide 72 by your interest rate to estimate how many years it takes to double your money. At 7%, your money doubles roughly every 10 years.