Interest
Also called: interest rate
The extra money you pay to borrow money. It also means the extra money a bank pays you when you save.
Example
You borrow $100 and have to pay back $110. The $10 is interest.
Why it matters
Interest works against you when you borrow and for you when you save.
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For learning, not personal financial, tax or legal advice. Rules and limits can change each year, so check official sources (like IRS.gov or your plan's documents) or a trusted pro before big decisions.