Nolo's Plain-English Law Dictionary

Legal Dictionary Home

Compound Interest
Interest paid at least in part on accumulated interest. For example, if interest on a savings account is compounded monthly, the depositor is paid interest on the amount deposited after the first month. After the second month, the depositor receives interest on the total amount in the account: the amount deposited plus the interest paid in the first month.
LA-NOLO1:LEADS.1.1.0.1.20150716.32264+