Interest Rates and Banking
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| Find the best interest rate |
Previously, you learned that some bank accounts are interest-earning accounts. What this means is that you earn interest, or a a certain percentage of money, for storing money in your account. The interest rate you earn is specified by your bank and the money you earn from interest is added to your account after a certain amount of time (as specified by your bank).
Interest comes in two forms: simple interest and compound interest. The amount of money you earn from interest is dependent on whether your account is a simple interest-earning acount or a compound interest-earning account.
Video: Introduction to Interest
Use the link below to watch KHANacademy's "Introduction to Interest" video to learn about simple and compound interest:
Further Your Understanding
Explore the following website to determine which type of financial institution is offering the best interest rates for CDs, money market accounts (MMA), and savings account.
