Interest rate
This is an old revision of this page, as edited by TheAmericanRedoubt (talk | contribs) at 00:05, April 7, 2014. It may differ significantly from current revision.
An interest rate is a rate that is charged on a loan or a rate given for a deposit to a bank that is a percent of the total money amount. Excess interest rates are called usury and are against the law. However, an interest rate that was considered as usury 50 years ago, is now "the new normal". Financial institutions can usually charge interest rates that are greater than individuals can charge when they make private loans to other individuals or via credit cards.
Interest rates can be either fixed (fixed rates) or they can change (adjustable rates). Rates on savings and checking accounts in a bank will usually change over time whereas a certificate of deposit will usually have a fixed rate for the life of the contract.
References