Know the Meaning of Interest Rates and Its Types

 Know the Meaning of Interest Rates and Its Types

 To know the meaning of interest rate and its types interest rates are a term that is often used in the banking world banking customer must be familiar with this term however not many really understand and understand the meaning of the interest rates then what is the interest rate the interest rate is the remote narration of value given by the borrower to the lender of funds or money usually interest rates are expressed as a percentage the Financial Service Authority or ojk it is edited Peaks Bank interest rate are remuneration provided by Banks to customers who buy or sell their products indoors can be interpreted as the price that must be paid by the bank to the customer who has deposit and the price that must be paid by the customer to the banks if the customer get a loan facility based on the explanation above being interest rates are divided into two types namely deposit interest and low on interest deposit interest is given by the bank of funds deposit or saved by customer at the banks meanwhile one interest is the remuneration set by the bank to the borrower for the low one he gets quit from Investopedia interest rate apply to lending and borrowing transaction this interest rate is applied to any party who borrows fund from the bank to buy a house finance a business to pay totation fees.

 Also explained that there are five types of interest rate in the banking industry the five type of interest rate are described as full fight facts interests red red five are fixed interest rates are interest rate that do not change within a certain period of time until the maturity that are during the term of the loan an example of a fixed interest rate is the interest rate that applies to locals homework get gas or subsidies more gigas in addition fake interest rate are also used in motor official loans floating interest rate floating interest rate are interest rated changed according to Market interest rate when Market interest rate rise the profiling interest rate will also rise and the same applies face versa an example of applying floating interest rate is for mod Gaggers with a certain period for example in the first two years of fixed interest rate is applied but in the following years of floating interest rate is applied Factor affecting interest rate the following Factor also affects the rate of interested determination 1. Bank need more funds if demand Formula 1 is high two the bank is targeting a bigger profits three government police the determination of the maximum interest rate must not extend the limit set by the government far collateral quality the issue it is to this form the lower the interest speed 5. deposit or low and period the longer you save the higher the interest fit the type of product you choose for example carloans and Home Loans have different interests rate seven reputation of the borrower or company the interest rate that the bank providers depends on the reputation of the program X High competition between Banks how to calculate interest rate you already known the types of interest rate based on their Network furthermore the types of interest can be distinguished based on three types of calculation.

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