Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• SAVINGS RATE
  
  Savings rate refers to the annual amount of interest you can earn on money you save. For many people, a savings account that earns 3.5 percent to 4.5 percent interest is an appropriate choice. This rate is generally used to compare two loan options. For example, if you decide to make a larger down payment on your home, you are sacrificing the interest you would have earned on the additional amount of money. The calculators take this "time value of money" into account.
  
  Back