The magic of compound interest in your super from shopping

Lots of us love to shop. Some of us were born to shop! But did you know that you can now earn compound interest on your superannuation, through Super Rewards?

What is compound interest?

Compound interest is the addition of interest to the main sum of a deposit. Basically, it’s interest on interest.

The idea is that it’s reinvesting interest – rather than paying it out. The interest in the next month, for instance, is applied on the main sum, as well as the accumulated interest from the previous month.

To use an example from our friends at Barefoot Investor: If you put $100 into a term deposit paying 5 per cent a year, after a year you will earn $5 dollars in interest, leaving you with a total of $105. If you choose not to spend the $5, and instead put the $105 in for another year in the fixed term deposit at 5 per cent, you’ll now have $110.25 after the second year. Put the $110.25 in for another year and you’ll have $115.75.

Here’s one of our favourite calculators – the ASIC compound interest calculator. It shows the above calculation, using $100 to start, compounding monthly, for 25 years, at a rate of 5%. Note that your contributions are $1500…but the compound interest is greater, at $1726. And best of all, YOU didn’t have to contribute that $1726.


Compound interest calculation

Now imagine how that graph could look if you applied it to your superannuation – where you’re starting with a far bigger balance, and if you made far more regular contributions. We’ve produced an animated version of that calculation – it’s pretty powerful.

What is the secret to compound interest?

  1. Time
  2. Regular contributions

Time – the sooner you start, the sooner you’re earning compound interest.

Regular contributions. It can be really tricky to find extra money each month to add to your super. This is where Super Rewards comes in, as we’ve blogged about here.

How does Super Rewards help me earn compound interest?

Super Rewards is an online shopping platform where Australia’s leading retailers pay cash rewards in your super. Yes, THE RETAILERS – not you – are contributing to your super, with an average cashback of 5%.

It’s super simple. You come to Super Rewards, you shop at any of the 130+ retailers available, and they pay the cash reward into your super.

Our animated calculation above showed earning $30 per month in your super through Super Rewards. It’s easy to do: by the time you shop online at Woolworths every week, buy some clothes for yourself or the children at THE ICONIC every few months, buy some pet food from Petbarn, some Christmas gifts from Booktopia, and perhaps book a holiday with P&O Cruises….you would easily meet the average amount of $30 per month.

So join Super Rewards now – don’t wait any longer!

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Retailers

This is a quick view of a collection of our retailers. To view all, please go to super-rewards.com.au

Accessories

Threadicated

Threadicated

Nautica

Nautica

katespade

Kate Spade

oroton

Oroton

witchery

Witchery

Baby and Children

kidsbrightstar

Bright Star

Bright Star Kids

Queen Bee

Queen Bee

Queen Bee

thatbabyshop

That Baby Shop

Beauty

nudebynature

Nude by Nature

fresh

Fresh

Fresh

endotaspa

Endota Spa

Endota Spa

sephora

Sephora

Sephora

Nourished Life

Nourished Life

Nourished Life

HARDTOFIND

Hard to find

Hard to find

Clothing and Fashion

modibodi

Modibodi

Modibodi

rockmans

Rockmans

Rockmans

hellomolly

Hello Molly

Hello Molly

showpo

Showpo

Showpo

ugg

Ugg

Ugg

Gabo+Kelly

Gabo+Kelly

Gabo+Kelly

Lacosta

Lacosta

Lacosta

Rodd & Gunn

Rodd & Gunn

Rodd & Gunn

THEICONIC

THE ICONIC

THE ICONIC

COUNTRYROAD

COUNTRY ROAD

COUNTRY ROAD

seike

Seike

bonds

Bonds

Lingerie and Swimwear​

sunburn

Sunwear

Sunburn

seafolly

Seafolly

brasnthings

Bras 'n Things

bendon lingerie

Bendon Lingerie

Electronics

bing lee

Bing Lee

Bing Lee

Apple

Apple

Bose

Bose

Bose

Lenovo

Lenovo

Lenovo

Men's Fashion

Gabo+Kelly

Garbo & Kelly

Rodd & Gunn

Rodd & Gunn

Food and Drink

Woolworths

Woolworths

Woolworths

BWS

BWS

BWS

marley spoon

Marley Spoon

Marley Spoon

vinomofo

vinomofo

vinomofo

jimmybrings

jimmy brings

jimmy brings

gourmet basket

Gourmet Basket

Gourmet Basket

edibleblooms

Edible Blooms

Edible Blooms

getwinesdirect

Get Wines Direct

Get Wines Direct

Home Entertainment

JBL

JBL

JBL

Home and Gifts

BookTopia

BookTopia

petals

Petals

Petals

interflora

Interflora

Interflora

livingstyles

Living Styles

Living Styles

adrenaline

Adrenaline

Adrenaline

Homewares

thegoodguys

The Good Guys

The Good Guys

lowes

Lowes

Lowes

Household

Renovation Store

Renovation Store

Renovation Store

Shoes

Hushpuppies

Hush Puppies

Ugg

Sport and Fitness

puma

Puma

Puma

footlocker

Footlocker

Footlocker

Travel

hotelscombined

Hotels Combined

Hotels Combined

travelinsurance

Travel insurance

Travel insurance

covermore

Cover More

Cover More

viator

Viator

Viator

edreams

eDreams

eDreams

qatar

Qatar

Qatar

pocruises

P & O Cruises

P & O Cruises

sta travel

Sta Travel

Sta Travel