Compound Interest earned on a savings account is compounding.
Compound Interest refers to the interest on interest. The accumulated interest on the principal amount is referred as compound interest.
For example: if you deposited 1000rs in saving account and interest provided is 2% compounded annually. Then the interest for first year is Rs20 and next year interest will be Rs20.4.
Thus the compound interest earned on saving account is refers as compounding.
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