Accumulation Definition

The process of building up a large sum of money by regular small deposits. For example, an employee might set aside $20 each bi-weekly paycheck into their savings account. After one year, the employee would have accumulated $520, plus interest, in savings.

In order to accumulate $1 million, not counting any interest, over the course of a thirty-year career, an employee would need to set aside $2,778 each month. With most individuals, it is generally true that large accumulations of money are only possible through long-term, routine deposits of smaller amounts into interest-bearing accounts, such as savings bonds, bank accounts and 401k accounts.