Compound interest allows you to earn interest on your interest. At the end of the first year, your 5 per cent interest would make your R1000 worth a little more. And the longer you leave your money untouched, the higher the amount it grows for you. David McCall, Executive Investments Retail and Business Banking at Nedbank joins CNBC Africa for more.
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.