Secrets of Interest on Investments

If you're considering investing, whatever form that investment may take, then you should do a little homework on the interest you will be receiving. For instance, there are two interest rates – one, the nominal rate, is the rate that banks will charge you to lend money. When you invest, however, they use an ‘effective' rate, that is far more complex, and that you need to understand, in order to know how much your investment is earning. You should also know that even if two investments pay the same interest, percentage wise, whether it's paid annually or monthly will have an effect on the amount of money you make. So before you invest in anything, make sure you understand exactly what the returns on your investment.