variable rate
Any interest rate or dividend that changes on a periodic basis. Variable rates are often used for convertibles, mortgages, and certain other kinds of loans. The change is usually tied to movement of an outside indicator, such as the prime interest rate. Movement above or below certain levels is often prevented by a predetermined floor and ceiling for a given rate. also called adjustable rate.
Mentioned in these terms
Related Terms on BusinessDictionary
Popular 'Banking' Terms
Related Personal Finance Articles
Loading...
variable rate in the news
Loading...
Enter your email address to get our free Term of the Day newsletter!
variable rate is ...
... part of the Banking and Lending & Credit subjects.







