The study, carried out for the Pensions Authority and Pensions Council, revealed that we find understanding things like compound interest, or how money grows over time, very difficult. It's better than just the 'interest rate' at properly comparing accounts which pay monthly or annual interest. Take 3pc 'cash back' right now, but with a 4pc interest rate on the loan, and you'll pay €206,608 by the end of the term. Banks want you to pay the lowest amount; they make more money that way. Research by TotallyMoney found 46pc of people don't know they still pay interest even if you make the minimum payment.

Source: Irish Independent June 08, 2019 01:30 UTC