How to Make Money Grow Without Using Interest

Video Transcript

"So how to make money grow without interest. The...my assumption is that you don't want interests just because there may be some risk involved in what you've seen out there. But you can actually do this with a zero coupon bond, and a zero coupon bond doesn't give you a stated interest rate, per se. What they will do, though, is you put the money in, the bond is held for a period of time, and after that maturity date, you get more than you put in. So it's not officially an interest rate, and a zero coupon bond, many times, if the bond is 1,000 dollar bond, maybe you can buy that for, you know, 900 dollars. So you're going to make 100 dollars. You just have to put your 900 in, wait for the maturity of that bond, and then you get 1,000 out. So that's how a zero coupon bond would work, and that is really one of the few ways to make money grow without an interest rate."