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Video - Money - Know It to Grow It - Interest

Written by Synchrony Staff

Published Apr 09 | 1 minute read

Money 101
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    Interested in interest?

    Interest is a charge, usually for a duration of time that we are either borrowing or lending money to others.

    When you have an interest bearing savings account, the bank borrows money from your account…

    …and lends it to people and businesses who will then pay them back, along with interest.

    The bank then pays you interest for using your money.

    There are two types of interest.

    With simple interest, your interest rate and the final amount you earn is based on a set percentage and paid back over a set time.

    With compound interest, you keep earning more interest on any outstanding balance and interest.

    Compounding interest can be pretty powerful.

    So that's interest. Find more ways to know and grow your money at Synchronybank.com.


    LEARN MORE: Video - Money: Know It to Grow It - Federal Reserve

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    Synchrony Staff

    This article contains contributions from multiple staff members for the Synchrony blog.

    *The information, opinions and recommendations expressed in the article are for informational purposes only. Information has been obtained from sources generally believed to be reliable. However, because of the possibility of human or mechanical error by our sources, or any other, Synchrony does not provide any warranty as to the accuracy, adequacy or completeness of any information for its intended purpose or any results obtained from the use of such information. The data presented in the article was current as of the time of writing. Please consult with your individual advisors with respect to any information presented.
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