The real magic of savings is that money can grow rapidly. When you put your money in a bank or credit union, each year it gets paid interest or dividends – this is a reward to you for saving your money. In year two, if you leave your money in the bank or credit union, you get interest or dividends on the money you originally saved as well as on the interest you earned in the first year. This means that the money you save can grow rapidly.
Here’s a question for you - would you rather have €10,000 or one cent a day doubled for 30 days?"
Day 1 you have one cent. On day two, you have 2 cents. On day three, you have 4 cents.
Day 4 you have 8 cent. Day 5, 16 cent Day 6, 32 cent
Day 7, 64 cent Day 8, €1.28 Day 9, €2.56
Day 10, €5.12 Day 11, €10.24 Day 12, €20.48
Day 13, €40.96 Day 14, €81.92 Day 15, €163.84
Day 16, €327 Day 17, €655 Day 18, €1,310
Day 19, €2,621 Day 20, €5,242 Day 21, €10,485
By day 21, you would have earned over €10,000 and it turns out that a cent a day doubled for 30 days adds up to more than 5 million euro.
You won’t quite get this interest rate in any bank or credit union, but it does show you the magic of how money grows.Gr8Savers - Lets CU Start Saving Today!