Introduction
The term Interest Money is defined by a lot of scholars in a good treasure of words but as simplified it is ‘the money that we get by having our money deposited in any financial organization or in an account of any bank. Or if we get a loan from a bank it is the money charged by a bank or a financial organization for the money that is borrowed. In other words one can earn interest by depositing his money in any bank or lending the money to any individual or any financial organization and it is the same system if he borrows the money from anywhere. The Interest Money means it is the rate of payment that is fixed on the time of money returns. For example any one deposit his money in a bank’s account the bank will pay fixed money to that one to keep his money in the bank. Or if any one borrows some money from a bank as a loan to purchase something or for other reasons that person will have to pay fixed money with the main amount of the loan.
History
Interest money is based on the interest rates that are the fixed percent of money that is charged or paid for the money that is borrowed or deposited. If the interest rates are high some people prefer to deposit their money in banks or financial organizations. And the people save their money to receive more interest on their savings. People must have their money where it gains its real value that is in term of interest. Banks use this money to lend it for needy persons on business organizations on the basis of interest. Interest Money is the chief subject of the loan system. For example as the World Bank lends the money to other banks is based on an interest that is prefixed by the World Bank. The other banks use this money for their customers to lend. The customer will pay the interest to the bank and bank will pay the interest to the World Bank. If the word bank’s interest rates are so much high in such condition it may be the cause of recession.
Features
A person invest his money in many types as saving accounts in banks, in LIC policies, shares, land purchasing and many others. In all these terms Interest Money is the common term that conducts with the each investment. One should be aware of terms and conditions of the money return and he should pay attention on the interest rates offering by different banks and financial organization. Some time people don’t pay attention on interest rates and get a heavy loss, it must not be. In each bank there is a loan adviser or an investment adviser who can help you, how to get the real value of your money. One must be attentive about the Interest Money offered.
Tips and comments
One should focus on the term cost of the plans provided by the insurance companies or financial organizations. People must keep leaning of the rates of the interest Money while taking a loan or depositing their money.
