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Account type features
Protecting your money
Understanding Interest Rates
management
What are Interest Rates?
Interest rates are the cost of borrowing money or the return on savings. They are expressed as a percentage of the principal amount. Understanding how interest rates work is crucial for making informed financial decisions.
Types of Interest Rates
- Fixed Rates: These remain constant throughout the loan term.
- Variable Rates: These can fluctuate based on market conditions.
Knowing the difference can help you choose the right financial products.
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