Money paid to you by a bank or other financial institution or other issuer in return for having the use of your money lent to them as a fixed interest or debt security. Sometimes the interest is paid at regular intervals. The interest is either paid directly to you, or it may be added to the money you have invested. The latter is called compounding. It means that you get interest on the interest. Under other arrangements interest may be paid out at the end of an agreed term.

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