Explore commonly used personal finance terms.
An accumulation account is a type of investment account that reinvests income or dividends back into the investment rather than paying them out to the investor. This type of account is often used in mutual funds or retirement accounts, where earnings are reinvested to increase the investment’s overall value over time. Accumulation accounts help investors compound their returns by maximizing growth potential through reinvestment, making them ideal for long-term investment strategies and wealth building.
