INTREREST

Tyler
Voc: Savings- The part of a person's income that is not spent.
Bank- An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositor's checks; and issues drafts and cashier's checks.

What is a savings account? Savings accounts are accounts maintained by retail financial institutions that pay interest but can not be used directly as money ( for example, by writing a cheque). These accounts let customers set aside a portion of their liquid assets while earning a monetary return.

How do you make money through a bank? By depositing money into a bank and getting interest off of it.
Define interest? The fee charged by a lender to a borrower for the use of borrowed money, usually expressed as an annual percentage of the principal; the rate is dependent upon the time value of money, the credit risk of the borrower, and the inflation rate. Here, interest per year divided by principal amount, expressed as a percentage. also called interest rate.
What two types of interest are named? Simple and compound
When does interest work in your favor? When you put money into a bank.
Banks pay interest in two ways. What are they?
Simple and compound. Compound interest makes your savings grow faster.