Many students may not know how interest rates work and how they can impact their savings. This video can help explain.

For a person who deposits money at a financial institution — let’s call them a “saver” — an interest rate is the price a financial institution pays for using the saver’s money. The amount paid to the saver by the financial institution is normally expressed as an annual percentage yield.

Help your students understand what interest rates are or how they work as the price paid for using someone else’s money with this short video.