Compound interest put simply is when the interest earned on an account, also earns interest. Earning compounded interest a great way to maximize your savings and get more for your money. In order to choose the best bank account, it is a good idea to contact different banks. Banks change their programs often.
What Accounts Compound Interest
Depending on the bank, almost all of their accounts compound interest. Checking accounts, savings, CD and Money Market Accounts are accounts that you can open with compound interest.
What Interest Rate Is Higher?
Again it depends on the bank and what they are offering at the time but typically checking accounts earn the least followed by a savings account, Money market account then CD accounts.
Money market accounts and CDs have more restrictions than a regular checking or savings account. There are time limitations as well as withdrawal penalties.
If you are looking to compound interest with a bank, than a CD or a money market account is your best investment. It is also important to note that the money is insured by the FDIC, so it is safe and accruing interest.