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Making Money Easier
The Easy Picture Guide to Banking
Bank Interest
There are different types of interest:
• Interest charged
• Interest paid to you
Interest charged
If you borrow money from a Bank or go overdrawn, the Bank will charge you interest. This means you would have to pay some extra money to the Bank. For example:
This could mean that if you borrowed £100, you might have to pay back the £100 AND an extra £20. That would be a total of £120 that you owe.
Interest paid to you
With some Bank Accounts, if you keep money in there, after a while the Bank will pay you interest. This means that the Bank will add some extra money to yours. For example:
This could mean that if you have £100 in a Savings Account then the Bank would pay you £5 by the end of the year. You would then have a total of £105.
There are different types of interest:
• Interest charged
• Interest paid to you
Interest charged
If you borrow money from a Bank or go overdrawn, the Bank will charge you interest. This means you would have to pay some extra money to the Bank. For example:This could mean that if you borrowed £100, you might have to pay back the £100 AND an extra £20. That would be a total of £120 that you owe.
Interest paid to you
With some Bank Accounts, if you keep money in there, after a while the Bank will pay you interest. This means that the Bank will add some extra money to yours. For example: This could mean that if you have £100 in a Savings Account then the Bank would pay you £5 by the end of the year. You would then have a total of £105.