If you take a loan or deposit money in a bank account to your savings account or term deposit, you will surely have interest rate. Certainly this is an important thing, but there are some other factors playing important role.
APR (Annual Percentage Rate)
The "APR is the percentage of the outstanding amount, which the consumer must pay for the period of one year in connection with payments, administration and other costs associated with the loan."
I will try to use a simpler formulation. It is a transfer of the costs of the loan to interest rates. Actually, it is compared to the credit product with a "perfect credit" where it only costs the interest that is credited annually. With the interest rate and APR may increase manipulate so that even relatively expensive loan looked interesting for the client.
You can easily workout cheaper if using a credit card or overdraft, where you also have more flexibility in repayment (which for some is a disadvantage rather tend to lengthen maturity when they do not "knife in the neck" in the form of a fixed payment schedule), or a combination of both.
Your credit card takes advantage of the grace period, and then repay (usually cheaper) overdraft. Incoming payments leave the account lie for as long as possible (compulsory payments...Read more:How Do You Compare The Interest Rate Of The Loan Or Deposit?
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