On 30th June each year, the FNPF Board declares an interest rate that is based on the performance of its investment activities. When an account is allowed to compound, interest credits is a big factor in the growth of a member's account. This example does not include FNPF contributions that may be added during the course of that period. Both accounts are shown to have compounded with interest, and regular contribution in the sample II, until the age of 55. Growth to an account is possible when it is made to compound over time.
Frequent withdrawals lessen the impact and momentum of compound growth.