Interest

If you borrow money, interest is the money you pay to the bank or lender to borrow money.

If you have a savings account, interest is the money you earn on your cash.

Usually, interest is a percentage of the amount involved. So if you borrow $100,000 from the bank to buy a house, your interest might be 5%. If you have $1,000 in a savings account, your interest might be 2% on that amount.