Saving & borrowing2 min read
InterestGerman: Zins
Interest is the price of using money for a period. Savers may receive it, while borrowers pay it.
In plain language
Rates are usually quoted per year. Payment dates, calculation methods and contract terms determine the actual amount. Variable rates may change during the term.
Let’s make it concrete
A €2,000 balance at 3% annual interest produces an illustrative €60 over a full year before taxes.
Simplified example for illustration.Worth understanding
A monthly interest amount and an annual rate are not the same. Compare identical time periods.
Read more from official sources
For further learning and reference:
Financial education for orientation. No individual investment, tax or legal advice.
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