The following benefits of Compound Interest: 1. Reinvestment - The interest earned will be reinvested into the same deposit. 2. Higher value of the deposit - Compound interest helps to a higher value of the deposit. After maturity, your deposit will be more than a deposit with simple interest. 3. Long-term savings - Compound interest deposits encourage long-term savings as the return on investment is much higher upon 10 years or more. 4. Increased Earnings - Compounding interest options monthly, quarterly, and half-yearly increase the interest earned.