The Money PagesEarn $5, Pay a $3 Fee. What’s Left?
A fee takes a bite out of the money your balance earned.
A made-up account starts with $100. It earns $5. Then the account charges a $3 fee.
A fee is money you pay for a service or under its rules.
Here's what's left:
$100 + $5 − $3 = $102.
The account earned money, but the fee took some away. That also leaves less money to earn more later.
Real accounts have different rules. Ask a grown-up what fees an account charges and when. Looking only at how much it might earn can miss part of the story.
Money words
Fee
Money charged for a service or under its rules.
Fees take money away from your balance. Include them when working out how much is left.
