interest.net

Many companies offer free Home Buying Seminars.

They are usually held in a well known local venue with an RSVP .

The advantages touted for attending one include,

buyers being given sound financial advice so that purchase is successful,

they learn from the  companies vast experience  of buying properties,

are given tips on property finance including the best interest rates,

do the sums

attract low interest loan

advised on how to pay minimum interest charges on repayments,

receive free advice from experienced professionals.

Its a buyers market with the Federal Government offering first home buyers  monetary assistance in the form of ” grants “‘ to help them purchase and Banks offering low interest repayment schedules.

Banks are attempting to get people to save more .

Bill Boards in high profile locations , eg St Kilda Junction , are promoting  “saving as the new spending “.

A glamorous young woman is seen sitting and smiling with a wallet and /or Savings PassBook in one hand .

saving is the new spending

Spending is so passe ” is the caption under the picture .

Its a bold marketing campaign by the NAB in a bid to attract more customers to establish Savings Accounts with  the Bank .

They are promoting an attractive lifestyle , glamorous appearance and many other benefits .

The message is clear don;t spend , save and be up to the minute with the latest fashion of saving .

Further attractions that the new account offers are,

no account fees

access to useful saving tools

online application@ ubank.com.au

its your money

generous variable interest rates that are much higher than the other Bank’s traditional low interest savings accounts .

add up the savings

Credit card, mortgage, and loan—- what do these things have in common? Interest rates, of course!

Interest rate is the service fee charged by the lender to a borrower.
It is usually expressed as a percentage of the principal amount or the total money borrowed.

For instance, person A loans $100 to person B. Person B, being the lender, can then ask person A to pay an additional 10%.
In this set up, the $100 is considered as the principal amount.
The additional 10% on the other hand, is the percentage rate.
This means that person A would have to pay person B a total of $110.

An interest rate is actually a compensation for taking a risk.
Remember that with every loan, there is always a risk that the borrower would not pay the money back.
The interest rate acts as the compensation that the lender will receive for risking his money to the borrower.

Interest rate plays an essential role in the monetary policy.
In fact, it is used to indicate economic variables such as inflation as well as investment.
The reason behind is that the economy grows whenever the consumer spends more.
This means that a low interest rate would mean more borrowing power to the consumer.

Similarly, a higher interest rate can help balance the demand especially if it is outpacing the supply.
By simply increasing the interest rate, the amount of money entering the market will be controlled.