FirstStepsInvesting

Decoder · Debt and cash

Interest

The price of borrowed money — paid by you on debts, paid to you on savings and bonds. On a credit card it is the silent second bill: at a 24.99% APR, a $2,400 balance charges about $50 of interest in the first month alone. On your savings it is the small 'thank you' a bank pays — real, but far too small to build a retirement on.

For your first $100: Interest works for whoever holds the right side of it. The order on this site exists to move your $100 from paying interest to earning it.

APR (annual percentage rate), in plain wordsEmergency fund, in plain wordsHigh-interest debt, in plain words

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See this word inside your order