Fixed, Floating, and Variable Rates
Rate structures that distinguish locked pricing, benchmark-linked resets, broader variable terms, blended balances, and contract rates.
Fixed, variable, benchmark-linked, nominal, and promotional rates used to price bank loans and deposit products.
Rate labels describe how a bank product is priced and how that price can change. A fixed interest rate remains locked for a defined period, while floating and variable rates can reset under the contract.
A benchmark-linked loan combines a reference with a margin. Prime Rate is a bank-set base rate used in some business and consumer lending. Market, nominal, and promotional rates answer different questions: a quoted teaser rate may be temporary, while the effective cost also reflects compounding, fees, and post-promotion terms.
Before comparing rates, identify the product, source, margin, reset date, compounding convention, cap or floor, and fees. A lower starting rate is not necessarily a lower total cost, and a benchmark is not the final customer rate.
This section provides general financial education, not advice to borrow, refinance, invest, or select a specific account.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Rate structures that distinguish locked pricing, benchmark-linked resets, broader variable terms, blended balances, and contract rates.
Prevailing market rates, long-maturity yields, stated-rate conventions, and temporary promotional pricing used in financial offers.
The prime rate is a bank-set base rate used to price some variable-rate business and consumer credit.