Banking & savings
Compounding frequency
How often interest gets added to your balance; more frequent compounding means more money.
Compounding frequency is how often earned interest is added back so it starts earning interest too.
The same rate compounded quarterly beats the same rate compounded annually, because interest starts working sooner.
It is why banks quote both a nominal rate and an effective annual yield for FDs.
For example
A 7% FD compounded quarterly gives a slightly higher effective yield than 7% compounded yearly, on the very same deposit.