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- Interest is the money you receive for loaning out funds. Interest is also the money you pay when you borrow funds. In a nutshell, it’s the amount charged for the privilege of using someone’s money. If your savings account earns interest, you're effectively “charging” your bank or credit union for the privilege of holding your cash.www.nerdwallet.com/article/banking/what-is-interest
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What Is APY? Annual Percentage Yield Definition and How It Works
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