When it comes to saving and collecting interest, time is a crucial factor. Your money has more time to earn interest the longer it is kept in a savings account. This is why it is advantageous to begin early and to keep up a long-term savings plan. Over time, the compounding effect becomes more pronounced. Compound interest allows even modest payments made often over a long period of time to increase tremendously. Therefore, the earlier you begin saving, the longer your money will work for you.