I have just started using a debit card but i want an option for a savings account . Most saving accounts come with 0.5-1% interest rate so what exactly does that mean?
Also would like to know if this is religiously acceptable (islam) (only if anyone has that knowledge please, its alright if you dont, you can avoid mentioning it)
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When you deposit money in a bank they then lend it to somebody else and charge their borrower interest.
They pay you a lesser rate of interest in exchange for having “used” your money deposited with them. This is the savings rate that you receive.
Assuming 1%, for every $100 you have deposited with them they pay you $1 per year.
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