Bonus Rate

Bonus Rate

An interest rate that is added to the interest rate of an annuity in the first year of its existence. For example, an insurance company may sell a fixed annuity with a 5% rate but apply a bonus rate of 2% in the first year so that the principal increases by a total of 7%. In the second and subsequent years, the bonus rate reverts to 5%. The bonus rate is a sweetener to attract customers.
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As far as providing income, then you could take a regular withdrawal of the annual bonus rate and then any terminal bonus that may be added in the future could help offset the effect of inflation.
Equation (3) merely converts an upper limit on the amount of the bonus (U') to an upper limit on the excess of earnings over the threshold (U) by dividing the former by the bonus rate.
The feasible set of fair combinations for the minimum guarantee and the terminal bonus rate are shown in Figure 14 for different choices of [theta], and in Figure 15 for different volatility scenarios.
FCA plans to make it easier for savers to seek better returns also include text message alerts to remind them when an introductory bonus rate is due to end.
Consumers will have the benefit of being informed by text message about changes in interest rates, the expiry of a bonus rate or maturity of a fixed-term account.
RATE ALERTS Savers will receive text message alerts to remind them when an introductory bonus rate is set to end under plans to make it easier for them to seek out better returns on their cash.
also uncovered a "wide variation" in terms of how much notice savings providers give for when a bonus rate is about to end.
wants to see banks and building societies making things easier by giving savers clearer information, including better notification when a bonus rate ends or if better accounts are available.
The Programme provides a number of benefits that include a 25 per cent discounted interest rate on QNB Credit Cards, a 50 per cent discount on all bank fees, bonus rate on fixed deposits, a discount on personal and vehicle loan interest rates and reduced cost comprehensive car insurance on QNB vehicle loans
The programme provides a number of benefits that include a 25% discounted interest rate on QNB credit cards, a 50% discount on all bank fees, bonus rate on fixed deposits, a discount on personal and vehicle loan interest rates and reduced cost comprehensive car insurance on QNB vehicle loans.
The Program provides a number of benefits that include a 25% discounted interest rate on QNB Credit Cards, a 50% discount on all bank fees, bonus rate on fixed deposits, a discount on personal and vehicle loan interest rates and reduced cost comprehensive car insurance on QNB vehicle loans
Banks are required to tell savers when their bonus rate is going to expire but Which?