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Monzo | What is interest?

Interest is money that you get when you put money in the bank. And it’s also money that banks make you pay when you use someone else’s money.

When you put money in the bank, your bank doesn’t leave it lying there. The bank gives it to other people, so they can buy stuff they need, like houses or cars. And the bank makes them pay to use that money.

When you give money to the bank, you get interest. When you get money from the bank, you pay interest.

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Luke Leighfield

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