Charges encompass various costs associated with financial transactions, such as interest fees on loans, transaction fees for purchases, and penalties for late payments. These fees can vary widely depending on the type of financial product or service and are essential for financial institutions to cover their operating costs and generate profit. Understanding charges is crucial for consumers, as they can significantly influence the total cost of borrowing or using financial services.
Charges Example
For example, if a bank charges a monthly maintenance fee of $10 for a checking account, the total charges over a year would amount to $120.