Savers benefit from the way interest earnings are computed
No financial expertise is needed to be a smart saver. But it helps to know one consumer-friendly fact. When you start to save, your credit union rewards you with an interest payment calculated as a certain percentage of your balance. Future payments are then based on the funds you’ve personally deposited AND all the previous interest you’ve earned. As this calculator illustrates, this compounding effect can really speed up your saving progress.