BANKING AFFAIRS

Detailed explanation-1: -Interest on a savings account is the amount of money a bank or financial institution pays a depositor for holding their money with the bank. In a way, a bank borrows money from their depositors by using the deposited funds to lend money to other customers.

Detailed explanation-2: -Interest is the monetary charge for the privilege of borrowing money. Interest expense or revenue is often expressed as a dollar amount, while the interest rate used to calculate interest is typically expressed as an annual percentage rate (APR).

Detailed explanation-3: -Interest-Interest is the additional amount you will pay to a lending institution to borrow money. In terms of savings, interest is the additional amount you will earn for having your money in a bank account or other savings vehicle.

Detailed explanation-4: -All banks set interest rates on their savings accounts that usually vary from 2.50% per annum to 7.00% per annum depending on the amount of savings.

Detailed explanation-5: -What are the Different Types of Interest? The three types of interest include simple (regular) interest, accrued interest, and compounding interest.