What is Compound Interest? Kal Penn Explains | Mashable

Compound interest is like a magic trick that happens inside your savings account.

Featuring: Kal Penn, Beth Stelling, Kevin Barnett

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[Mostafa-rqrm]

Inflation makes it not worth it. The U.S. Government is printing money at ridiculous rates and so by the time your $5 turns to $10, you won't be able to buy what $5 used to. Your $10 is now worth what $4 was when you started the savings account. The inflation is faster than the interest you're accumulating.

[NaudVanDalen]

Too bad interest rates of banks are almost non existent right now. You need to invest money to get much more out of it. If only this video told people to buy bitcoins because they got worth much more since 2015. :P Now that's profit.

[DiabloV]

Great explanation, very convenient for the bank. Dumbest thing to do with your money is having sit in a savings account where you get close to nothing for it and the banks continues to play with your money making the far far more with it. There are far better ways out there to have your money grow.

[francoiscote]

Great job with this explanation, my students will enjoy it. I hope?

[brianb]

And when you adjust for inflation, which is the hidden tax of the modern financial scam known as the Federal reserve banking system, and then you pay gains on your taxes, investing your money isn't quite as simple as simply sticking it an account and letting it grow. investing in gold and silver for 10 years almost always outperform the s&p 500, something to think about