Compounding is the vehicle used to multiply your savings and can happen, most commonly, in one of three ways; daily, monthly, and quarterly. The more frequently the interest on your savings compound, the more your money will multiply. It’s worth noting that the rate at which interest compounds doesn’t have a significant impact on earnings. For example, in one year $10,000 earning 3% in interest compounded daily earns just 37 cents more than the same amount compounded monthly.