If you have a savings account, you know what interest is. It’s that little bit of extra cash that the bank pays you for letting them hold your money.
You also know what interest is if you have a credit card balance or a loan. In that case, it’s the fee you pay for borrowing money.
But interest is often supercharged — it’s more than just a percentage of your original balance. That’s called compound interest.
Read the full article in the Finances FYI section of The Seattle Times, sponsored by 1st Security Bank.