INTRODUCTORY RATE Meaning and
Definition
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An introductory rate refers to a special and temporary interest rate or pricing structure that is offered by a financial institution or service provider to attract new customers or incentivize the use of a particular product or service. This rate is usually lower or more favorable than the standard rate or pricing that applies thereafter.
In the context of financial products, such as credit cards, mortgages, or personal loans, an introductory rate often serves as a promotional offer to encourage individuals to sign up, make a purchase, or transfer a balance. These rates may be fixed or variable, but generally have a set duration, commonly ranging from a few months to a couple of years, during which the rate remains lower than the regular or market rate.
The purpose of an introductory rate is to provide an attractive incentive that entices potential customers to choose one product or service over others available in the market. It allows individuals to benefit from reduced costs or interest charges during the introductory period.
It is important for consumers to carefully review the terms and conditions of introductory rates as they may include clauses that activate higher rates, additional fees, or penalties once the introductory period ends. It is wise to assess the long-term implications of the regular rates and fees associated with the product or service in order to make an informed decision and avoid any surprises once the introductory rate expires.
Common Misspellings for INTRODUCTORY RATE
- untroductory rate
- jntroductory rate
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- ontroductory rate
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- inteoductory rate
- intdoductory rate
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- inttoductory rate
Etymology of INTRODUCTORY RATE
The etymology of the word "introductory rate" can be traced back to multiple sources.
1. "Introductory" originates from the Latin word "introductus" which is the past participle of "introducere", meaning "to lead in" or "to bring inside". It combines the prefix "intro-" meaning "inside" or "within" and the verb "ducere" meaning "to lead".
2. "Rate" has a more complex etymology. It derives from the Latin word "rata" meaning "reckoned" or "fixed". From there, it evolved into the Old French word "rate" which referred to a "fixed portion". Eventually, it entered Middle English as "rate" with the same meaning.
When combined, "introductory rate" refers to the initial or starting rate offered to introduce a product or service to the market.
