rate of interest on deposits
11interest rate margin — / ɪntrəst reɪt ˌmɑ:dʒɪn/ noun the difference between the interest a bank pays on deposits and the interest it charges on loans …
12Adjustable-rate mortgage — A variable rate mortgage, adjustable rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit… …
13Compound interest — The effect of earning 20% annual interest on an initial $1,000 investment at various compounding frequencies Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also… …
14Floating interest rate — A floating interest rate, also known as a variable rate or adjustable rate, refers to any type debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument. Such debt… …
15London Interbank Offered Rate — The London Interbank Offered Rate (or LIBOR, pronEng|ˈlaɪbɔr) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). LIBOR will …
16Euro Interbank Offered Rate — The Euro Interbank Offered Rate (or Euribor) is a daily reference rate based on the averaged interest rates at which banks offer to lend unsecured funds to other banks in the euro wholesale money market (or interbank market). copeEuribor rates… …
17LIBO Rate (Reserve Adjusted) — The LIBO Rate means, relative to any interest period for LIBO Rate Loans, the rate of interest equal to the average [ Rounded upwards, if necessary, to the nearest 1/16 of 1% ] of the rates per annum at which dollar deposits in immediately… …
18adjusted Eurodollar rate — USA Also referred to as the Eurodollar rate in combination with the Eurodollar base rate. A method of determining the interest rate in a loan agreement. Eurodollar refers to US currency held in banks outside of the United States that is generally …
19Net Interest Rate Spread — The difference between the average yield a financial institution receives from loans and other interest accruing activities and the average rate it pays on deposits and borrowings. The net interest rate spread is a key determinant of a financial… …
20base rate — 1) The rate of interest used as a basis by banks for the rates they charge their customers. In practice most customers will pay a premium over base rate on loans and will receive below the base rate on deposits with banks. 2) An informal name for …
