Types
of Interest Rates:
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Savings
Account Rates
 Interest
rates normally apply to money you place in a savings account.
Banks encourage depositors in order to have more of the funds
it needs to be able to give loans to other customers. By
saving money in a bank, you are effectively giving your bank
a loan and just like any other loan, this earns money through
interest.
However, the interest paid to you for your
account deposits does not compare at all to the interest
the bank
would charge
you if you were to borrow a similar amount of money. Normally
the interest rates for savings accounts are about less than
1% annually (applied to the lowest balance in the account). |
