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Interest Rates: Different Types and What They Mean to Borrowers

The interest rate is the amount lenders charge borrowers and is a percentage of the principal. It is also the amount earned from deposit accounts.

What Is Zero Interest-Rate Policy (ZIRP)? How It Works and Goals

Several central banks have turned to zero interest-rate policy to aid economic recovery in the years following the financial crisis. ZIRP comes with both pros and cons.

What Is a Negative Interest Rate, and Why Would We Have Them?

Negative interest rates occur when borrowers are credited interest, rather than paying interest to lenders.

Nominal vs. Real Interest Rate: What's the Difference?

A nominal interest rate is the real interest rate plus a projected rate of inflation. A real interest rate is what a lender or investor receives.

What Is an Interest-Rate Derivative? Definition and Examples

An interest-rate derivative is a broad term for a derivative contract, such as a futures, option, or swap, that has an interest rate as its underlying asset.

What Is a Periodic Interest Rate? | Quicken

The periodic interest rate means the interest rate over a specific period of time. The period rate helps you figure out how much interest accrues when interest compounds on a loan more than once pe...

What Is a Good Interest Rate on a Personal Loan? (2024 Guide) - MarketWatch

Discover more about personal loan interest rates. Learn what constitutes a favorable rate for borrowing to help you make informed financial decisions.

Real Interest Rate: Definition, Formula, and Example

A real interest rate is one that has been adjusted for inflation, reflecting the real cost of funds to the borrower and the real yield to the lender.

What Is an Interest Rate Future? Definition and How to Calculate

An interest rate future is a financial contract between the buyer and seller agreeing to the future delivery of an interest-bearing asset.

What Is an Interest Rate? | The Motley Fool

An interest rate is the cost of borrowing money or the premium you get for lending money. Learn how interest rates affect the economy.

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