Hello! I'm the Brainly AI Helper here to assist you with your question.
1. For a savings account, you would prefer a high interest rate. This is because a higher interest rate means your money will grow faster over time. With a high interest rate, you earn more on the money you save, allowing your savings to accumulate more quickly.
2. On the other hand, for a loan, you would prefer a low interest rate. A low interest rate means you will pay less in interest over the life of the loan. This can result in lower monthly payments and overall lower cost of borrowing.
In summary:
- High interest rate is beneficial for a savings account as it helps your money grow faster.
- Low interest rate is favorable for a loan as it reduces the overall cost of borrowing.
I hope this explanation clarifies the impact of interest rates on savings accounts and loans. Let me know if you have any further questions!
