{"id":302426,"date":"2021-03-22T09:00:00","date_gmt":"2021-03-22T09:00:00","guid":{"rendered":"https:\/\/northern.finance\/uncategorized\/why-p2p-is-ideal-for-leveraging-the-compound-interest-effect\/"},"modified":"2026-02-10T12:00:47","modified_gmt":"2026-02-10T12:00:47","slug":"compound-interest-effect","status":"publish","type":"post","link":"https:\/\/northern.finance\/en\/learn-how-to-invest\/compound-interest-effect\/","title":{"rendered":"Take advantage of compound interest: How to grow your money optimally"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The compound interest effect is often regarded as a miracle cure for wealth accumulation. In reality, however, the idea of simply accumulating wealth after a one-time investment often does not work. Those who start late or can only invest irregularly are wasting potential.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That&#8217;s why I have specifically included higher-yield investments in <a href=\"https:\/\/northern.finance\/en\/my-depot\/\" data-type=\"link\" data-id=\"https:\/\/northern.finance\/en\/my-depot\/\">my portfolio<\/a> alongside traditional ETFs in order to accelerate the compound interest effect. It now stands at over \u20ac400,000! Here, I will show you step by step how you can use this effect to your advantage.<\/p>\n\n\n\n<div>\n<div class=\"wp-block-group nf-info-boxen\">\n<div class=\"wp-block-group__inner-container\">\n<p class=\"nf-boxen-p-gut-zu-wissen\">In brief:<\/p>\n<ul class=\"infobox-ul\">\n<li class=\"infobox-li\">Compound interest means that income generates further income.<\/li>\n<li class=\"infobox-li\">The more consistently you invest, the stronger the compound interest effect.<\/li>\n<li class=\"infobox-li\">Starting early, investing regularly and achieving solid returns are crucial for optimal wealth accumulation.<\/li>\n<li class=\"infobox-li\">ETFs are a good basis for taking advantage of the compound interest effect \u2013 but with limits on growth.<\/li>\n<li class=\"infobox-li\">P2P lending offers significantly higher returns but also carries higher risk. However, it is suitable for adding to a portfolio in order to boost the compound interest effect.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What is behind the compound interest effect?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Compound interest means that not only your invested capital, but <strong>also interest already received, earns interest<\/strong>. With each passing year, the amount on which interest is earned grows, resulting in exponential growth. At the beginning, relatively little happens, but over the years, a significant increase in interest becomes apparent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can calculate compound interest using this formula:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Final value = K x (1+r)n<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where K is your initial capital, r is the annual return and n is the term in years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An example: You invest \u20ac1,000 at an annual return of 7%. After 10 years, you will have earned more money with the compound interest effect than without it. After a term of around 20 years, you will see how big the difference actually is with patience and discipline:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Year<\/strong><\/td><td><strong><strong>Capital without compound interest<\/strong><\/strong><\/td><td><strong><strong>Capital with compound interest effect<\/strong><\/strong><\/td><\/tr><tr><td>0 (Start)<\/td><td>5.000 Euro<\/td><td>5.000 Euro<\/td><\/tr><tr><td>5<\/td><td>6.750 Euro<\/td><td>7.013 Euro<\/td><\/tr><tr><td>10<\/td><td>8.500 Euro<\/td><td>9.835 Euro<\/td><\/tr><tr><td>20<\/td><td>12.000 Euro<\/td><td>19.342 Euro<\/td><\/tr><tr><td>40<\/td><td>19.000 Euro<\/td><td>74.872 Euro<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"569\" src=\"https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-1-Kapitalwachstum-2-1024x569.png\" alt=\"\" class=\"wp-image-318787\" srcset=\"https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-1-Kapitalwachstum-2-1024x569.png 1024w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-1-Kapitalwachstum-2-300x167.png 300w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-1-Kapitalwachstum-2-768x427.png 768w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-1-Kapitalwachstum-2.png 1080w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Comparison of capital growth with and without compound interest<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">In this example, <strong>over 93% of the final capital comes from interest<\/strong> alone. The longer you invest your money and consistently reinvest it, the faster it grows. While the difference is still manageable at the beginning, the compound interest effect really takes off after about 20 years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With compound interest, \u20ac5,000 in starting capital becomes almost \u20ac75,000 after 40 years. Without compound interest, it would only be \u20ac19,000, i.e. four times less.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These factors determine how much you get out of the compound interest effect:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Term:<\/strong> The greatest effect occurs after several years. Those who can start early have a massive advantage here.<\/li>\n\n\n\n<li><strong>Reinvestment:<\/strong> If profits are not paid out but consistently reinvested, this has a significant effect on the total return.<\/li>\n\n\n\n<li><strong>Return:<\/strong> Even differences of 1 to 2% can make a difference of tens of thousands of pounds after decades. Therefore, focus on <a href=\"https:\/\/northern.finance\/en\/financial-freedom\/high-yield-investments-paths-to-financial-freedom\/\">financial investments with high returns<\/a>!<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<iframe width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/1aePpqfMVTo?si=fPdiCpvmRYZnzGSb\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n\n\n\n<h3 class=\"wp-block-heading\">Why does the compound interest effect not work for everyone?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The theory of starting once, letting it run, and later experiencing explosive growth works well, but only under ideal conditions. For many investors, however, there are obstacles in practice:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Late start:<\/strong> If you start at 25, you have about 40 years until retirement. However, not everyone is in a position to invest large sums of money at a young age. If you only start at 40, you only have 25 years left. In terms of final capital, this quickly makes a difference between \u20ac27,000 and \u20ac75,000.<\/li>\n\n\n\n<li><strong>Inflation:<\/strong> It devalues purchasing power in the long term and leads to silent losses, even if your account is growing. For example, if you have a 3% return after tax but inflation is 4%, you are losing money in real terms. For example, \u20ac10,000 today is only worth about \u20ac4,000 in 30 years with 3% inflation.<\/li>\n\n\n\n<li><strong>Unexpected expenses: <\/strong>The compound interest effect only works if the capital remains in play. However, many people are forced to dip into their savings from time to time. In emergencies or when making larger purchases, not only is capital withdrawn, but the compound interest effect is also interrupted.<\/li>\n\n\n\n<li><strong>Taxes and fees:<\/strong> In reality, there are various costs that offset your return. Taxes, platform fees, exchange rates and transaction costs can significantly reduce compound interest.<\/li>\n\n\n\n<li><strong>Fluctuating returns:<\/strong> Even though the stock market return is around 7% in the long term, this is not consistently the case every year. Markets often fluctuate and crashes or failures can significantly disrupt your investment potential.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>My tips:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2713 Start investing as early as possible, even with small amounts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2713 Always set your target return realistically after inflation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2713 Build up a nest egg first and then invest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2713 Returns fluctuate. It is important to stick with it and build a diversified portfolio so that the compound interest effect can fully unfold.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How can you get the most out of the compound interest effect?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The compound interest effect can only reach its full potential if you create the right conditions. I have been using these levers for my portfolio for years:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Automate reinvestment<\/strong> <br>I don&#8217;t just leave interest and dividends in my account, I reinvest them immediately. This can even be done automatically if, for example, you choose accumulating <a href=\"https:\/\/northern.finance\/en\/etf\/the-10-best-dividend\/\">dividend ETFs<\/a> that reinvest distributions internally. The less you have to do manually, the less potential you lose.<\/li>\n\n\n\n<li><strong>Increase reinvestment frequency<\/strong><br>When most investors hear the term \u2018compound interest effect\u2019, they think of an annual investment, but monthly or even daily reinvestments significantly increase the effect! You can use platforms such as <a href=\"https:\/\/northern.finance\/en\/review\/monefit-vs-bondora\/\">Monefit or Bondora<\/a>, with short terms and immediate reinvestment.<\/li>\n\n\n\n<li><strong>Optimise your target return<\/strong><br>In the long term, the level of your return makes a huge difference, of course. Investment forms with higher returns often also involve higher risk. That&#8217;s why I don&#8217;t just focus on maximum returns in my portfolio, but optimise it in a sustainable and diversified manner.<\/li>\n\n\n\n<li><strong>Save up a nest egg<\/strong><br>The compound interest effect only works optimally if you don&#8217;t have to constantly withdraw money from your portfolio. If you have an emergency account from which you can pay for unforeseen expenses, your investment remains untouched and can continue to work for you.<\/li>\n\n\n\n<li><strong>Patience<\/strong><br>As banal as it sounds, the compound interest effect only pays off after years. At first, it may feel like the wait is not worth it. Don&#8217;t give up in the early years, but stay patient and keep at it so that your strategy pays off in full.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">My tip: The investment platform <a href=\"https:\/\/northern.finance\/erfahrungsbericht\/bondora-erfahrungen\/\">Bondora<\/a> offers you good interest rates and lightning-fast payouts. This makes it a great place to keep your nest egg. But other <a href=\"https:\/\/northern.finance\/en\/p2p\/bondora-alternative\/\">Bondora alternatives<\/a> are also worth considering.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Boost compound interest with investments yielding over 10% returns<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you want to not only take full advantage of the compound interest effect, but also actively accelerate it, you have two main levers at your disposal:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>How often you reinvest (reinvestment frequency):<\/strong> The more often you reinvest your earnings, the faster the compound interest takes effect.<\/li>\n\n\n\n<li><strong>What return you achieve on your capital:<\/strong> Even small differences can have a huge impact over the years.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Two types of investment are particularly suitable if you want to take advantage of the compound interest effect with acceptable risk, especially in combination:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>ETFs<\/strong> are a proven basis for long-term wealth accumulation. Accumulating funds (i.e. those that automatically reinvest the returns) are particularly recommended, as they inherently offer the compound interest effect.<\/li>\n\n\n\n<li><strong>P2P <\/strong>lending enable above-average returns with more personal responsibility. In my view, they are ideal for adding to your portfolio in order to increase overall performance and boost the compound interest effect.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Compound interest with ETFs<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">ETFs allow you to participate in the stock market without having to put in a lot of effort to manage your investments. You can set up an <a href=\"https:\/\/northern.finance\/en\/etf\/etf-savings-plan\/\">ETF savings plan<\/a> or make a one-time investment and then sit back and relax. Accumulating funds automatically reinvest dividends or interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ETFs have an average return of approximately 8% per year. Even if this seems unspectacular at first glance, the compound interest effect has an enormous impact over decades. For example, anyone who invested the equivalent of \u20ac10,000 in the S&amp;P 500 in 1975 would now have over \u20ac520,000 in their portfolio after 50 years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Advantages:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 No effort required. Once set up, your investment runs automatically.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Investment in the entire global economy with the MSCI World ETF<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Average return of 6\u20138% per year<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Limitations:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c Return is \u2018only\u2019 in the single digits<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c With distributing ETFs, you have to take action yourself<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c Returns fluctuate, especially in times of crisis<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>My assessment: <\/strong>ETFs are a strong foundation, especially for long-term goals such as retirement planning. However, if you want to significantly accelerate the compound interest effect, they reach their limits.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Accelerate the compound interest effect with P2P lending<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">P2P platforms allow you to lend your capital directly to borrowers \u2013 without going through banks. In return, you receive interest that you can reinvest. For me, P2P lending are not a substitute for traditional investments, but a powerful addition to fully exploit the compound interest effect.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Compared to traditional forms of investment, the capital cycle is much faster here. Many lending have terms of 30-90 days, so your money and the interest you earn are returned to you quickly. Even daily payouts are possible, as a glance at my <a href=\"https:\/\/northern.finance\/en\/p2p\/p2p-platform-rating\/\">P2P loan ranking<\/a> shows!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Due to the high frequency, you can benefit particularly strongly from the compound interest effect with this model. And we also benefit from the extremely high returns: providers such as <a href=\"https:\/\/northern.finance\/en\/review\/indemo-review\/\">Indemo<\/a> and <a href=\"https:\/\/northern.finance\/en\/review\/ventus-energy-review\/\">Ventus Energy<\/a> offer us more than 20% per annum.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Advantages:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Significantly lower costs for investors than with traditional forms of investment<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Auto-investment reduces manual work and time spent on administration<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Above-average returns of 6% to more than 20%!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Restrictions:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c Default risk if the borrower has a poor credit rating or the platform lacks transparency<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c Regular review advisable, especially for larger investment amounts<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u274c Platforms are not banks, so the risks depend heavily on the business model<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those who use P2P lending as a high-yield booster can significantly accelerate the compound interest effect. I myself have been using P2P platforms for years, the largest provider <a href=\"https:\/\/northern.finance\/en\/review\/mintos-review\/\">Mintos<\/a> for example for more than 9 years!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As an addition to my portfolio in combination with other stable components such as ETFs, P2P investments play an important role. With <strong>\u20ac10,000 in starting capital<\/strong>, you can see here what returns you can achieve on different platforms (without withdrawals, without defaults, calculated tax-free):<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><\/td><td><strong>\u00d8 <strong>Annual return<\/strong><\/strong><\/td><td><strong>10 years<\/strong><\/td><td><strong>15 years<\/strong><\/td><td><strong>20 <strong>years<\/strong><\/strong><\/td><td><strong>25 <strong>years<\/strong><\/strong><\/td><td><strong><strong>interest portion<\/strong><\/strong><\/td><\/tr><tr><td><strong>Swaper<\/strong><\/td><td>16 %<\/td><td>\u202f44.114 \u20ac<\/td><td>\u202f92.655 \u20ac<\/td><td>\u202f194.607 \u20ac<\/td><td>\u202f408.742 \u20ac<\/td><td>~96\u201398\u202f%<\/td><\/tr><tr><td><strong>Debitum<\/strong><\/td><td>13 %<\/td><td>\u202f33.946 \u20ac<\/td><td>\u202f62.543 \u20ac<\/td><td>\u202f115.231 \u20ac<\/td><td>\u202f212.305 \u20ac<\/td><td>~95\u201397\u202f%<\/td><\/tr><tr><td><strong>Ventus Energy<\/strong><\/td><td>18 %<\/td><td>\u202f52.338 \u20ac<\/td><td>\u202f119.737 \u20ac<\/td><td>\u202f273.930 \u20ac<\/td><td>\u202f626.686 \u20ac<\/td><td>&gt;\u202f98\u202f%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Swaper: Fast compound interest with consumer lending <\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Swaper focuses on consumer lending with short terms of around 30 days. Investors can expect an average annual return of 14 to 17%. In addition, <a href=\"https:\/\/northern.finance\/en\/bonus\/swaper-bonus\/\">Swaper offers a bonus<\/a> of an additional 2% if you register via my link.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In my <a href=\"https:\/\/northern.finance\/en\/p2p\/p2p-platform-rating\/\">P2P lending ranking<\/a>, the platform scores highly due to its high level of transparency and reliable payouts. The high turnover rate of our capital is also ideal for the compound interest effect!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Advantages:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Very short loan terms, so interest is paid out quickly and a strong compound interest effect occurs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Flexible auto-invest function with filters for risk profile and term, for example<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Audited annual financial statements provide additional security<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I use Swaper specifically because I can reinvest the money here every month and thus make optimal use of the compound interest effect for my portfolio. In practice, I achieve an average annual return of 15% on my investments here. I currently have almost e6,000 invested here.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"574\" src=\"https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-2-2-1024x574.png\" alt=\"\" class=\"wp-image-318793\" srcset=\"https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-2-2-1024x574.png 1024w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-2-2-300x168.png 300w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-2-2-768x431.png 768w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-2-2.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">My Swaper Depot is currently worth just under \u20ac6,000.<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Debitum: Stable B2B lending<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">At Debitum Investments, you invest in corporate lending that are often backed by specific collateral (e.g. machinery or inventory). The platform is regulated within the EU and offers partial buyback guarantees on certain loans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Advantages:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Average return of 12\u201314% with a perfect repayment rate<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Investments in secured business projects (e.g. forest investments)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 EU-regulated and audited annual financial statements for high security<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For me, Debitum is the \u2018conservative\u2019 building block among P2P providers. I use it as a stable return anchor with solid earnings. Thanks to relatively short terms, a strong compound interest effect quickly sets in here as well.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"599\" src=\"https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-3-2-1024x599.png\" alt=\"\" class=\"wp-image-318799\" srcset=\"https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-3-2-1024x599.png 1024w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-3-2-300x175.png 300w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-3-2-768x449.png 768w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-3-2-1536x898.png 1536w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-3-2-2048x1198.png 2048w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-3-2-scaled.png 2560w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The latest figures from Debitum Investments are impressive!<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ventus Energy: High returns with a focus on energy and infrastructure<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Investors do not finance third-party projects at Ventus Energy, but invest directly in the platform operator&#8217;s energy projects. For example, they pay for the acquisition and expansion of biomass power plants, solar plants, energy infrastructure and similar projects.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These are already active and generate ongoing income. The company uses investments from investors like you and me to accelerate its own growth. In return, we receive returns of 18%, which can even be increased to up to 24% with certain bonus promotions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Advantages:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Very high interest rates, ideal for optimising returns<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Financing of own projects with ongoing cash flow<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 Clear focus on sustainable energy and long-term project development<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For me, Ventus Energy is a risky but very lucrative return booster. The business model is less diversified than other platforms, which in my opinion requires special risk management. Nevertheless, I wouldn&#8217;t want to miss out on the up to 24% interest!<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"460\" src=\"https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-4-2-1024x460.webp\" alt=\"\" class=\"wp-image-318805\" srcset=\"https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-4-2-1024x460.webp 1024w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-4-2-300x135.webp 300w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-4-2-768x345.webp 768w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-4-2-1536x690.webp 1536w, https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/Grafik-4-2.webp 1900w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Ventus Energy currently provides me with the highest returns on my peer-to-peer investments.<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">My conclusion: This is how I take full advantage of the compound interest effect<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The compound interest effect is one of the most powerful levers in wealth accumulation. However, it is not a sure-fire success, but requires the right conditions! If you start late or rely on too low returns, you will not fully exploit its potential.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To start with, accumulating ETFs, which automatically reinvest distributions, are a good choice. They run without any action on your part and are well suited for long-term wealth accumulation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">P2P lending have proven to be a good addition: with this type of investment, you lend your money to private individuals or companies and receive very high interest rates in return! Rates of over 20% are currently possible here. In addition, your profits are distributed at regular intervals, which massively accelerates the compound interest effect.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These two items play a central role in my portfolio, which is now worth over \u20ac400,000. I was only able to build up this portfolio with a lot of patience and a systematic approach \u2013 probably the most important prerequisites for effective wealth accumulation and the compound interest effect!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you invest regularly and do not touch your capital, you can accumulate a considerable fortune over several years. If, on the other hand, you have interest and dividends paid out, the compound interest effect does not work \u2013 but you then receive a <a href=\"https:\/\/northern.finance\/en\/passive-income\/41-ways-to-build-passive-income\/\">passive income<\/a>, which could also be useful for you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">FAQ &#8211; Frequently asked questions<\/h3>\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-c8fdfb45 uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height     \" data-faqtoggle=\"true\" role=\"tablist\"><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-32265990 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\"><strong>What is meant by the compound interest effect?<\/strong><\/span><\/div><div class=\"uagb-faq-content\"><p>The compound interest effect occurs when not only your original capital but also the interest already earned accrues interest. This results in exponential growth that becomes stronger over time.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-6944635c \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\"><strong>How can you benefit from compound interest?<\/strong><\/span><\/div><div class=\"uagb-faq-content\"><p>Those who start early, invest regularly and consistently reinvest their returns make the most effective use of the compound interest effect. Choosing the right type and mix of investments also plays a role.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-921dfbb7 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\"><strong>Is compound interest a good way to earn money?<\/strong><\/span><\/div><div class=\"uagb-faq-content\"><p>Compound interest is not a get-rich-quick scheme, but rather a sustainable strategy for building wealth. With patience and discipline over a period of several years or decades, the effect can unfold to its full potential.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-dada11a1 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\"><strong>Can compound interest beat inflation?<\/strong><\/span><\/div><div class=\"uagb-faq-content\"><p>Whether the compound interest effect offsets or exceeds inflation depends on the return achieved. This is hardly possible with conservative savings products, as they often fall below the inflation rate. ETF or P2P investments, on the other hand, often offer higher returns.<\/p><\/div><\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The compound interest effect is often regarded as a miracle cure for wealth accumulation. In reality, however, the idea of simply accumulating wealth after a one-time investment often does not work. Those who start late or can only invest irregularly are wasting potential. That&#8217;s why I have specifically included higher-yield investments in my portfolio alongside [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":304879,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_uag_custom_page_level_css":"","footnotes":""},"categories":[1039],"tags":[1185,1033,1229],"class_list":["post-302426","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learn-how-to-invest","tag-compound-interest-effect","tag-p2p-loans","tag-why-p2p-is-ideal-for-leveraging-the-compound-interest-effect-i-p2p-opinion"],"acf":[],"uagb_featured_image_src":{"full":["https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/EN-Zinseszins-Thumbnail.png",1280,720,false],"thumbnail":["https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/EN-Zinseszins-Thumbnail-150x150.png",150,150,true],"medium":["https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/EN-Zinseszins-Thumbnail-300x169.png",300,169,true],"medium_large":["https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/EN-Zinseszins-Thumbnail-768x432.png",768,432,true],"large":["https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/EN-Zinseszins-Thumbnail-1024x576.png",1024,576,true],"1536x1536":["https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/EN-Zinseszins-Thumbnail.png",1280,720,false],"2048x2048":["https:\/\/northern.finance\/wp-content\/uploads\/2021\/03\/EN-Zinseszins-Thumbnail.png",1280,720,false]},"uagb_author_info":{"display_name":"Aleks Bleck","author_link":"https:\/\/northern.finance\/en\/author\/phil-nf\/"},"uagb_comment_info":0,"uagb_excerpt":"The compound interest effect is often regarded as a miracle cure for wealth accumulation. In reality, however, the idea of simply accumulating wealth after a one-time investment often does not work. Those who start late or can only invest irregularly are wasting potential. That&#8217;s why I have specifically included higher-yield investments in my portfolio alongside&hellip;","_links":{"self":[{"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/posts\/302426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/comments?post=302426"}],"version-history":[{"count":17,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/posts\/302426\/revisions"}],"predecessor-version":[{"id":319241,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/posts\/302426\/revisions\/319241"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/media\/304879"}],"wp:attachment":[{"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/media?parent=302426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/categories?post=302426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/northern.finance\/en\/wp-json\/wp\/v2\/tags?post=302426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}