Interest is one of the more important aspects of dealing with banks and other lenders depending upon the type of account or loan that you're dealing with, the interest can either make you money or cost you money.

A variety of different factors can determine how much interest you receive or how much you pay, in the case of loans and credit lines.

Below you'll find several examples of accounts that are either paid interest or that have interest charged against your balance, as well as the factors that can influence the interest rates of each.

Interest Rates and Savings

The usage of interest in savings accounts is one of the most well known forms of interest after all, the mark of a good savings account is one that has a relatively high interest rate.

The interest paid can sometimes depend upon the specific type of savings account that an individual has, and is more directly influenced by rates set at the national or local level.

Of course, interest rates can also vary slightly from bank to bank; before deciding upon a savings account at one bank it's important to check other banks in the area to determine whether you're getting the best interest rate available to you or not.

Interest Rates and Chequeing

Chequeing accounts are not as well known for their interest rates, especially considering that it has only been within recent years that having a chequeing account with an interest rate became commonplace.

The interest rates that are offered on modern accounts tend to be lower than those offered with savings accounts, however the accounts have a much higher degree of accessibility than savings accounts do.

The interest rate offered with a chequeing account is set in much the way as those offered with savings accounts, meaning that they are influenced by national and local rates and may vary from lender to lender.

Interest Rates and Loans

Unlike chequeing or savings accounts where you want the interest rate to be as high as possible, the interest rates associated with loans mean that you'll be paying an additional amount added on to the money that you borrow.

Loan interest rates can depend upon several factors, including your credit rating, national and local interest rates, the type of loan that you're applying for, the amount of the loan, and even the collateral that you use to secure the loan.

Some types of loans have special repayment options that allow you to make payments primarily toward interest if you so choose, and others allow you to refinance your original loan in an attempt to reduce your interest rate and your monthly payment.

Interest Rates and Credit Cards

The interest rates that are charged against the balance of credit cards can be a bit confusing at times. These rates are based upon the annual percentage rate, or APR, and are greatly dependent upon your credit history and national factors.

Lower APR cards are generally offered to individuals who have had good credit in the past, whereas cards with a higher APR are offered to those individuals who have had credit problems.

The APR of the card that you use may fluctuate from month to month, but it is the yearly average of the interest that you must pay in addition to your card balance.

By keeping balances low or paying off the balance entirely, it's not only easy to keep interest costs under control but you may actually end up qualifying for a lower APR by showing yourself to be willing and capable of making all of your payments on time.

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