Interest rate
The annual percentage paid by a saver or charged by a lender, expressed as a percent of the principal. The same number means very different things depending on whether it is paid to you (savings) or by you (debt).
A savings account at 2% pays you €20/year on every €1,000. A credit card at 20% costs you €200/year on every €1,000 owed.
Interest rate
This term appears in a longer lesson, where the idea gets the proper treatment with examples and a working visualization.
Read the lesson →Money in motion
Compound interest
Interest paid not just on what you put in, but on the interest you have already earned.
Read →Inflation
The rate at which the general price of things rises. Same money, less purchasing power.
Read →Return
The gain (or loss) on an investment, usually expressed as a percentage per year.
Read →Time horizon
How many years until you actually need the money. Changes everything else.
Read →