Compound interest is the process by which your money earns returns not only on the original amount you invested but also on the returns that have already been added. In other words, it is "interest on interest", a snowball effect that makes your money grow faster the longer it stays invested.

For investors, compounding is one of the most powerful forces in finance because it turns time into a financial ally. Each year's gain becomes the base for the next year's growth, which means even modest annual returns can lead to impressive results if given enough time.

Consider an example, if you invest R100 000 at an annual return of 10%, after the first year you'll have R110 000. In the second year, you earn 10% not just on the original R100 000, but on R110 000, bringing the total to R121 000. By year ten, without adding a cent more, that R100 000 grows to about R259 000. Leave it untouched for 20 years, and it swells to roughly R672 000. After 30 years, the same investment compounds to just under R1.75 million.

This is the power of compounding, the longer you stay invested, the greater the acceleration of growth. It rewards patience and discipline, showing that consistent investing and time in the market often matter more than chasing short-term gains. For anyone saving toward retirement, education, or future financial independence, compound interest is the quiet engine that makes lasting wealth possible.