Fixed rate

Fixed rate

A traditional approach to determining the finance charge payable on an extension of credit. A predetermined and certain rate of interest is applied to the principal.

Fixed Interest Rate

An interest rate that does not change over the life of a loan or other form of credit. If one borrows money at a fixed interest rate of 10%, then 10% is calculated over the principal balance each time the interest compounds. A fixed interest rate differs from a variable interest rate, which may change, at least within certain parameters. Most home mortgages in the United States have fixed interest rates. It is also called simply a fixed rate.
References in classic literature ?
It will readily be understood that the fluctuations in the value of money and in the state of society rendered a fixed rate of compensation in the Constitution inadmissible.
In the first place, none of them should have any property of his own beyond what is absolutely necessary; neither should they have a private house or store closed against any one who has a mind to enter; their provisions should be only such as are required by trained warriors, who are men of temperance and courage; they should agree to receive from the citizens a fixed rate of pay, enough to meet the expenses of the year and no more; and they will go and live together like soldiers in a camp.
You could do worse than opt for a fixed rate and forget about the whole sorry economic mess until your rate ends.
First Direct has a three year fixed rate at this level and is then followed by the standard variable rate of 3.
Fixed rate financing was provided by a local bank at a fixed rate of 5.
LONDON, July 25 /PRNewswire/ -- Nationwide Building Society today announces details of a new range of competitive Fixed Rate ISA Bonds which all offer a guaranteed interest rate savings for savers looking to take advantage of their annual tax-efficient allowance.
As well as the fixed-rate mortgages there are also some recent trackers that are also proving popular because the lenders that are offering them are prepared to let you switch to a fixed rate at any time without having to pay any penalties - such as NatWest and Cheltenham & Gloucester.
The news is better for those who opted for a traditional 30-year fixed rate loan, especially if they took the plunge this spring.
So it seems like a good time to take advantage of the competitive fixed rate deals that are out there.
Reggie says he tries to keep a blend of fixed- and floating-rate loans so he can benefit from market conditions on at least a portion of the debt he carries: "If I see interest rates beginning to rise dramatically, and it looks to me like they will continue to rise, I can fix some loans at whatever the fixed rate is on that date.
Another option, called LOWAR, or Lower One-Way Adjustable Rate, acts like a fixed rate if rates move higher, because the starting rate, which is slightly higher than the traditional fixed rate, is the highest rate ever paid.