Daily, monthly, and yearly compounding are compounding frequencies attached to an instrument that offers compound interest rates. You can choose plans where the interest is accrued daily, monthly, six-monthly, or annually.
For example, with daily compounding, the interest will be accrued daily. With monthly compounding, it will accrue monthly, and with yearly, it will accrue once a year. The more time your money has to compound and grow, the more you will end up with.