What Is the Interest Rate on My Savings Account? | The Ascent

What Is the Interest Rate on My Savings Account? | The Ascent

If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience. Those new to banking -- or even some who have been at it a while -- may be surprised to learn that not all interest is bad. Unlike the interest fees you're charged for credit products, savings account interest works for you, rather than against you. The interest on a savings account is the fee you earn for keeping your money in the bank. Why? Banks use the collective money deposited by account holders to finance loans and other investments. Interest fees are paid to you by the bank as compensation for letting them use your deposits as capital for investments. (Don't worry, the bank never uses all of …
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