See exactly how your money grows over time with compound interest. Model your TFSA, RRSP, GIC, or HISA — with or without regular contributions.
| Scenario | Initial | Monthly | Rate | 10 Years | 25 Years |
|---|---|---|---|---|---|
| Big bank savings (0.05%) | $5,000 | $200 | 0.05% | $29,018 | $65,012 |
| EQ Bank HISA (3%) | $5,000 | $200 | 3.00% | $33,762 | $92,093 |
| KOHO HISA (5%) | $5,000 | $200 | 5.00% | $37,444 | $123,282 |
| Stock market (avg 7%) | $5,000 | $200 | 7.00% | $42,053 | $166,024 |
| GIC ladder (4.5%) | $5,000 | $200 | 4.50% | $35,381 | $107,031 |
Moving from a big bank savings account (0.05%) to KOHO (5%) on a $5,000 starting balance with $200/month contributions generates an extra $58,270 after 25 years — just from a higher interest rate on your savings. No additional investment required.
Compound interest means you earn interest on your interest. Each period, your interest is added to your principal, and the next period's interest is calculated on the larger amount. This creates exponential growth over time.
| Type | $100 at 5% for 10 years |
|---|---|
| Simple interest | $15,000 ($5,000 interest) |
| Compound (annual) | $16,289 ($6,289 interest) |
| Compound (monthly) | $16,470 ($6,470 interest) |
| Compound (daily) | $16,487 ($6,487 interest) |
More frequent compounding means slightly more interest. Most Canadian HISAs compound daily and credit monthly, which is nearly equivalent to daily compounding.
The Rule of 72 lets you quickly estimate how long it takes to double your money: divide 72 by your annual interest rate.
| Interest Rate | Years to Double | Example |
|---|---|---|
| 1.00% | 72 years | Big bank savings |
| 3.00% | 24 years | EQ Bank HISA |
| 5.00% | 14.4 years | KOHO HISA |
| 7.00% | 10.3 years | Stock market (avg) |
| 10.00% | 7.2 years | High-growth stocks |