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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The company said that the yield meant that customers' assets would increase by 5.64%, while the bonus rate paid by other Swedish life insurance companies was 0-3.25% for the whole year.
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.
The CVP model presented in this article will enable managers: (1) to determine the necessary output to achieve a specified target profit (or break even); and (2) to determine the maximum bonus rate that will enable the target profit to be achieved.
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.
pounds DERBYSHIRE Building Society has increased the bonus rate on its NetSaver account by 0.07 per cent, to 2.18 per cent gross a year, to make a market-leading 3.18 per cent gross interest a year.
The suite of products offers free banking for the first year, a free small safety deposit box for one year and a bonus rate on Guaranteed Investment Certificates.
The deal agreed with representatives of the three employee unions gives an increase of GBP0.67 in the bonus rate, making a total of GBP2.75 per hour, reported Reuters.
As you are a basic-rate taxpayer, all returns would be free of both income tax and capital gains tax and currently one of the better bonds is giving an annual bonus rate up to 9.5 per cent net for the first year.
People should also be told more clearly when a bonus rate or fixed term on an account is coming to an end, it said.
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
EASY access savings accounts which pay an introductory bonus rate are on the "verge of disappearing", a financial information website has warned.