What type of financial product benefits the most from compound interest?

High-interest savings accounts benefit the most from compound interest because they are specifically designed to help savers grow their money over time. Compound interest allows the interest earned on an account to be reinvested, meaning that future interest calculations include not only the principal amount but also the interest that has already been added to the account. This creates a scenario where the account balance can grow exponentially over time, especially when the interest is compounded frequently (e.g., daily or monthly).

In contrast, while checking accounts may offer some interest, they typically have lower rates and often allow for easy withdrawals without reinvesting interest back into the account. Credit cards and payday loans, on the other hand, are financial products that generally incur interest on borrowed money rather than earn interest on deposited money, making them less related to benefiting from compounding in the same positive manner.