Interest definition from GOOGLE: (noun)
- The state of wanting to know or learn about something or someone.
- Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
Hearing the word “interest” may be scary for some people but I am here to tell you that it doesn’t have to be. I explain it with a semi illustration on my newest YouTube video (watch here).
I go into minor details of interest broken down into Interest earned and Interest paid. If you have a savings account at a bank, you should be earning interest on that money. APY(annual percent yield) can range from 0.01% to 6.00% interest and/or maybe even higher. If you have ever had or currently have a loan that you are repaying, there is interest added to that loan that you have to pay.
Your best option to figure out where you fall on each type of interest is to do your research. Go to your accounts whether online, go through paperwork that you may have on hand or call the institution that you are affiliated with and ask them to tell you your interest rate on the account in question.
Please don’t think that interest does not affect you. It does! Directly! Knowing your interest rate on a savings account or a loan can save you a lot of money. Hundreds actually. Everything that I mentioned in the video are things that I have experienced. I learned the lesson for you!