These terms show up in loans, savings, and advertising.
A low, temporary interest rate offered to attract new customers
A significantly higher interest rate charged when a borrower misses payments
A scenario where the borrower is paid and the lender pays to store money
A unit of measure for interest rates equal to 1/100th of 1%
A loan where the borrower only pays the interest for a set period, not the principal
An interest rate that remains constant for the duration of the loan or investment
An interest rate that fluctuates over time based on an underlying index
The process of paying off a debt over time through regular installments
The base interest rate commercial banks charge their most creditworthy customers
The practice of lending money at unreasonably high or illegal interest rates
Interest calculated only on the principal amount
The original sum of money borrowed or invested
The stated interest rate before accounting for compounding
The actual interest rate earned or paid due to compounding
How often interest is calculated (e.g., monthly, daily)
interest earned or charged on prior interest too
annual percentage yield, commonly used for savings growth
annual percentage rate, commonly used for borrowing cost