BANKRATE Meaning and
Definition
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Bankrate is a financial term referring to the interest rate charged by a financial institution, typically a bank, on loans or the interest paid to depositors for keeping their money in a savings account or certificate of deposit (CD). It represents the annual percentage rate (APR) at which interest is earned or charged.
The bankrate is an important factor for individuals and businesses when considering borrowing money or investing savings. Lenders use bankrate to determine the cost of borrowing, while savers rely on it to estimate the potential return on their investments. The rate offered by financial institutions differs based on factors like the type of loan or account, the duration of the loan or deposit, the creditworthiness of the borrower, and prevailing market conditions.
A high bankrate indicates higher borrowing costs for individuals and businesses, making loans more expensive, and may lead to lower demand for loans. On the other hand, a high bankrate benefits savers as they earn more interest on their deposits. Conversely, a low bankrate reduces the cost of borrowing but offers smaller returns to savers.
Bankrate is a crucial metric for individuals and businesses in financial decision-making, helping them assess the affordability of loans and the potential profitability of investments, thus allowing them to make informed choices that align with their financial goals.
Common Misspellings for BANKRATE
- vankrate
- nankrate
- hankrate
- gankrate
- bznkrate
- bsnkrate
- bwnkrate
- bqnkrate
- babkrate
- bamkrate
- bajkrate
- bahkrate
- banjrate
- banmrate
- banlrate
- banorate
- banirate
- bankeate
- bankdate
- bankfate
Etymology of BANKRATE
The word "bankrate" is a combination of two terms, "bank" and "rate".
- "Bank" comes from the Italian word "banco" or the German word "bank" which both mean a bench or a counter. These words were used to refer to the type of table or counter where moneylenders or moneychangers conducted their business.
- "Rate" is derived from the Latin word "ratus" meaning "fixed" or "determined". It later evolved into the Middle English word "rate", which refers to a fixed amount or charge.
The term "bankrate" was likely developed to describe a specific interest rate set by banks or financial institutions. Over time, it has become commonly used to refer to websites or services that provide information about interest rates, loan rates, savings rates, and other financial rates.
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