Interest Glacier
Patience makes your dollar grow.

You might remember interest as the extra money you may have to pay if you owe money on a credit card. Well, interest isn’t always money you have to pay. Sometimes it’s money that’s paid to you.

When you put money in a bank account, sometimes the bank pays you interest for your money. For instance, Tangerine Bank pays 3% interest every year. So, if you leave your money in your account, each year you’ll end up with 3% more money than you started out with. That means, if you open an account with $100, you’ll earn 3% of $100, or $3, for the first year. And your new total, or account balance, will be $103. Plus, each year after that, you’ll earn another 3% interest on your account balance.

$3 might not seem like much. But just think: You might not see this glacier growing with your own eyes, but it is. Every year it steadily grows a whole 10 feet thicker and 100 feet wider as snow and ice build up. The same happens with interest. If you leave that $100 in your Tangerine Savings Account for 25 years, it’ll grow just like this glacier! From your original $100 deposit, your balance will grow to $209. That’s $109 in interest alone!

You might not be able to see it happening, but interest will help you inch your way towards your savings goal.