Compound Interest

While there are various strategies to achieve financial growth, one powerful tool that shouldn’t be overlooked is compound interest. Compound interest is the concept of earning interest not only on the initial investment but also on the accumulated interest over time. As the interest compounds, it creates a snowball effect, gradually increasing the growth of your investment. When harnessed effectively, compound interest can exponentially multiply your wealth over time. 

Term investments provide a prime opportunity to leverage compound interest for accelerating wealth. By investing a fixed amount for a specified term, you can benefit from competitive interest rates while allowing your investment to compound. Here’s how you can accelerate your wealth through term investments and compound interest.

Start Early

The key to maximising the benefits of compound interest is time. The earlier you start investing, the longer your investment has to compound and grow. Even small amounts invested consistently over time can have a significant impact on your wealth accumulation. Introducing kids and grandkids to the concept of investing and compound interest is also a great way to set them up for a healthy financial future, thanks to the power of compound interest over a longer period.

Choose high-yield term Investments

Seek out term investments that offer attractive interest rates, rather than simply opening an account with your bank. When you open a Term Investment with APS, you can earn up to 5.50% p.a.*, translating into faster growth of your investment.

Maintain a long-term perspective

Term investments are designed for a specific duration, often ranging from a few months to several years. It’s crucial to maintain a long-term perspective and resist the temptation to withdraw or prematurely terminate the investment. The longer your investment remains untouched, the more time it has to benefit from the compounding of interest.

Regularly review and reinvest

Periodically review your term investments to ensure they continue to meet your financial objectives. As each investment matures, consider reinvesting the funds into a new-term investment to continue benefiting from the power of compound interest. With APS Term Investments, you will earn an additional 0.25% when you reinvest, allowing for consistent growth and wealth acceleration.


Compound interest is a remarkable wealth-building tool, and term investments provide an ideal platform to capitalise on its benefits. By starting early, choosing high-yield term investments, maintaining a long-term perspective, and regularly reviewing and reinvesting, you can unlock the full potential of compound interest and accelerate your wealth accumulation.

Learn more about earning 5.50% p.a. With APS Term Investments.