What Are Interest Rates?

By Investment U Research Team Any time you invest money, you’ll find yourself dealing with interest rates. They can be a little confusing if you’re just getting started. What are interest rates and how do they work? It’s a question worth asking, and it depends strongly on the financial product you’re talking about. In the case of investments, the higher the rate, the better. In the case of debt—such as a bank loan—a lower rate is more advantageous. Context is important for understanding how to capitalize on or protect yourself from interest rates.
Here’s a surface level look at interest rates, to get you familiar …read more



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