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Find out what type of interest is for you
You want to earn as much interest as possible on your savings but not pay more than you have to when you borrow. One of the biggest factors in both is whether you’re accruing simple or compound interest.
Simple Interest: Calculated annually on the amount you deposit or owe.
Compound Interest: Interest earned is added to the principal, forming a new base on which the next round of interest is calculated. This can accrue daily, monthly, or quarterly.