You reinvest the interest, causing the principle to grow, meaning the next interest payout is bigger, and you add it, and so on. There's a hard to remember formula for working out how the amount grows but the rule of thumb is divide the constant 72 by the interest rate to get the number of years it takes to double the amount. At 6% interest your money doubles in roughly 12 years. At today's (USA) interest rates it's pretty slow.
Right, compound isn't even a real thing anymore with these pathetic rates. OP would be better off looking at some dividend stocks.
Especially given the inflation we're bound to see with all this money printing, at least equities will go up relative to inflation, cash is going to get destroyed.
Inflation with extremely low interest rate will eat up cash. Buy ammo--if you can find it right now.
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