Quote Originally Posted by Brennus View Post
This is completely un-related to EB, but how does interest work? Or rather why do we even have it?
Interest is basically a fee paid to use someone else's money. If you borrow from the bank, you pay them back what you borrowed plus a little extra as payment for using their money. Likewise, if you invest in a savings account, a savings bond, etc... you are letting the bank use your money and when you withdraw or cash in, you'll get a little extra (usually much less than the bank gets on interest from loans) for letting them use your money.

Hope this helps.