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RE: How Works Compound Interest? Learn the Secrets of the Dark Side
I have always loved interests both in compound and simple but i have learnt never to leave my money at the bank for a compound interest. I did this sometime back and i also placed the same amount of money into a small business. I realized that i was making a loss on the compound interest compared to compound reinvesting :)
Businesses are also risky, many of them declare bankruptcy. Many countries apply an insurance of deposits/savings to secure people's money. But it has only a sense if real interest rate is indeed positive.