# Compounding interest

**URL:** <https://community.investengine.com/t/compounding-interest/1281>\
**Category:** Help & FAQs\
**Created:** [20 November 2023 08:16 UTC](https://community.investengine.com/t/compounding-interest/1281 "2023-11-20T08:16:56Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![EHopper](https://avatars.discourse-cdn.com/v4/letter/e/e5b9ba/32.png) [@EHopper](https://community.investengine.com/u/EHopper)\
**Post date:** [20 November 2023 08:16 UTC](https://community.investengine.com/t/compounding-interest/1281/1 "2023-11-20T08:16:56Z")

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I’ve had a Google but can’t seem to find if/how investengine’s interest compounds. Would anyone be able to point me in the right direction?

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**Author:** ![peter](https://avatars.discourse-cdn.com/v4/letter/p/278dde/32.png) [@peter](https://community.investengine.com/u/peter)\
**Post date:** [20 November 2023 09:05 UTC](https://community.investengine.com/t/compounding-interest/1281/2 "2023-11-20T09:05:17Z")

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Hi EHopper. InvestEngine doesn’t pay any interest on uninvested cash in your account:

> **[Will I earn interest on cash on my account?](https://help.investengine.com/hc/en-gb/articles/8006934172445-Will-I-earn-interest-on-cash-on-my-account-)**
>
> Right now, we don't pay interest on cash on Account or cash held on Portfolios.
> The Account cash facility is designed to help customers better manage their investments. It can help with balancing i...

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**Author:** ![TBrailles](https://avatars.discourse-cdn.com/v4/letter/t/ac8455/32.png) [@TBrailles](https://community.investengine.com/u/TBrailles)\
**Post date:** [20 November 2023 15:06 UTC](https://community.investengine.com/t/compounding-interest/1281/3 "2023-11-20T15:06:30Z")

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I guess this might be a question about how often the funds in your account compound. Apologies if not.

The truth is that they don’t really. These are investments with no guaranteed return. It’s higher risk than a savings account.

Now, if over the long term you earn a 4% annual return, then in a sense you’ll see similar performance to a bank account paying 4% compounded annually.

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**Author:** ![EHopper](https://avatars.discourse-cdn.com/v4/letter/e/e5b9ba/32.png) [@EHopper](https://community.investengine.com/u/EHopper)\
**Post date:** [20 November 2023 16:09 UTC](https://community.investengine.com/t/compounding-interest/1281/4 "2023-11-20T16:09:34Z")

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That’s the one. Thank you for your help!