🎯 Goal: Read fees, interest, and terms before using a financial product, comparing to choose the better one.
Each product (card, loan, deposit) has its own fees, interest, and terms. Reading and comparing avoids wasted money and picks the right one.
Let’s explore
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Compare interest: for deposits, higher is better; for loans, lower is better.
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Watch hidden fees (annual, penalty) and binding conditions.
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Read the terms (tenure, early/late penalties) before signing/agreeing.
Practice activity
🧮 Loan A 12%/year, 0 fee; loan B 10%/year, 2% upfront fee. For 10M over 1 year, which is cheaper?
Worked example: Borrow 10M/1 year. A: 12% = 1,200,000d, 0 fee → total 1,200,000d. B: 10% = 1,000,000d + 2% fee = 200,000d → total 1,200,000d. Equal; you must count both fee and interest.
Quick quiz
1. For a deposit, the interest rate should be?
→ Higher is better
2. For a loan, the interest rate should be?
→ Lower is better
3. To compare loan cost correctly, count?
→ Both interest and fees
4. "Hidden fees" are?
→ Easily-missed fees (annual, penalty)
5. Before signing a financial contract, you should?
→ Read the terms carefully
6. A low-interest but high-fee product can?
→ Still cost a lot total
🎯 Real-life mission
Read the fee schedule of a financial service you or your family use.