Understanding interest rates
What is interest? What is the rate of interest?
Quite simply, interest is the cost of money. The rate of interest is the cost of using someone else's money. When it comes to interest rates, Canadians are pulled in two directions: people who save and invest money expect a good return on their investments, or people who borrow money to buy homes, cars, businesses etc, want the lowest possible interest rates.
Quite simply, interest is the cost of money. The rate of interest is the cost of using someone else's money. When it comes to interest rates, Canadians are pulled in two directions: people who save and invest money expect a good return on their investments, or people who borrow money to buy homes, cars, businesses etc, want the lowest possible interest rates.