When it comes to investing, it’s always a good idea to choose an investment avenue that allows you to enjoy compounded interest. This is the most efficient way to maximise your returns and get the most out of your money.There are a number of investment opportunities today where you can benefit from plans that compound interest at regular intervals. At the most basic level, banks offer compound interest. The interest you earn every 6 months is added to your savings, and for the next six month, you can earn interest on the new amount. But this is hardly enough to help you achieve your financial goals.Mutual funds andUnit-Linked Insurance Plans (ULIPs)are two of the most common investments that utilise compound interest formulae to grow your money. Both investment avenues work in a similar fashion, with the main difference being that ULIPs offer the additional benefit of life cover. Compound interest investment plans are especially useful in planning your finances for your retirement.