What are the three types of compound interest?
In theory, interest can be calculated as frequently as someone would want to calculate it (daily, weekly, monthly, etc.). In practical terms, there are standard periods for different types of financial products. In general, the interest on a savings account at a bank is typically compound daily, whereas a certificate of deposit (CD) might be daily, monthly or semi-annually. For loans such as mortgages and credit cards, compound interest is normally calculated monthly.