Interest Rates & Investment Tips

Video Transcript

"This is Patrick Munro talking about savings accounts interest rates. Basically if you are with a bank and you place money on deposit with that bank, you will receive interest for the usage of your money. The bank will basically take your money into their fold, and they'll combine it with other money and lend it out to the community in the way of mortgages, car loans, retail loans, credit cards. When they do that, they make interest as well. When they receive that interest they pay it back to their depositors in the form of deposit interest. The more money you give a bank, the more rights you have to a higher rate of interest. However, if you don't keep the bank, the money with the bank for a long period of time, they in turn will offer you a lower rate of interest. So bare that in mind that time is money, and the more money you have at a longer period of time you give it to the bank, the higher rate of interest you'll get on your savings account. That's an important factor in wealth building and I think that it's important to have cash in your accounts as a key component to that. This is Patrick Munro financial adviser talking about savings accounts interest rates."