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Account type features
Protecting your money
Understanding Interest Rates
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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 product.
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