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Finance & Banking vocabulary · Interest & Exchange Rates

Fixed rate

Meaning in finance & banking, with examples

nounCore term

In finance & banking, fixed rate means: An interest rate that stays the same for the whole loan or deposit term, or for an agreed period, so the payments do not change.

In Turkish: sabit faiz, sabit oran

How it is used

Used for loans, mortgages, deposits and bonds. A borrower fixes the rate or takes a fixed-rate loan; in the UK, mortgages are often fixed for two or five years. Write 'fixed-rate' with a hyphen before a noun.

Example sentences

  1. Most of our consumer loans are at a fixed rate, so the installment never changes.

  2. She chose a five-year fixed-rate mortgage.

Common collocations

  • fixed-rate loan
  • fixed-rate mortgage
  • fixed-rate bond
  • lock in a fixed rate
  • variable rateAn interest rate that can go up or down during a loan or deposit term, usually because it follows a benchmark rate.
  • interest rateThe price of borrowing money, shown as a percentage of the amount borrowed or saved for a period, usually one year.
  • mortgageA long-term loan used to buy a home or other property. The property secures the loan, so the lender can have it sold if the borrower does not repay.
  • APRShort for annual percentage rate: the yearly cost of a loan or credit card shown as a percentage, including interest and certain required fees.

More terms: Interest & Exchange Rates

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This page explains English vocabulary for learners. It is not financial advice.