interest
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interest
The price paid for borrowed money or received for invested money, usually given as a percentage of the capital. Often used in the plural, 'Zinsen' (interest).
Für den Kredit müssen wir jährlich 5 Prozent Zinsen zahlen.
We have to pay 5 percent interest annually on the loan.
Although the singular 'der Zins' (interest) exists, in everyday language and financial language the plural 'die Zinsen' is almost always used. This is common even when you are talking about a single interest rate.
Die Zinsen für Baukredite sind im letzten Jahr gestiegen.
Interest rates for construction loans rose last year.
In connection with interest, the verbs typically used are 'zahlen' (to pay, for a loan), 'bekommen' (to get) or 'erhalten' (to receive, for an investment), and 'anfallen' (to accrue, when interest arises).
Für mein Sparkonto bekomme ich zurzeit kaum Zinsen.
I'm currently getting hardly any interest on my savings account.
The word 'Zinseszins' (compound interest) is a good example of a German compound word. It consists of 'Zins' (interest), the linking -s '-es-', and 'Zins' again. It literally means interest on interest.
Albert Einstein soll den Zinseszins als achtes Weltwunder bezeichnet haben.
Albert Einstein is said to have called compound interest the eighth wonder of the world.
fee
'der Zins' and 'die Gebühr' both have to do with money, but they arise in different situations. Interest is paid or received when money is borrowed or invested. It usually depends on an amount, a percentage, and a period of time. A fee is paid for a specific service, use, or official administrative action, for example at a bank, a public office, or for a course. Learners may confuse the words because both can be additional costs. When money over time is involved, you are more likely to talk about 'Zinsen' (interest); for a specific service, you use 'Gebühr' (fee).
Für den Kredit zahlt Maria jeden Monat Zinsen an die Bank.
Maria pays interest to the bank every month for the loan.
Für den neuen Ausweis muss der Kunde eine Gebühr bezahlen.
The customer has to pay a fee for the new ID card.