What are interest rates?
 Interest refers
to a fixed amount added to a debt, often a percentage of
the debt’s total.
This is considered the cost of the debt to the borrower. Interest
that your money earns when saved in a bank or building society
account, as well as interest earned from a savings bond or similar
investments, is essentially the payment given to you for allowing
your money to be temporarily used for the borrower’s
purposes. In other words, money that you deposit into your
savings account
is effectively a loan you provide to the bank, and in turn
your bank treats your deposit as a debt to be repaid at a
future date.
About interest rates in the UK...
 In the UK, different kinds of interest rates
may apply depending on the particular details set in the
loan agreement. In most cases, interest is calculated according
to the cost of the loan to the lender, with a certain amount
of profit added to the final figure. Anytime money is borrowed,
the lender and the person or company taking out the loan
will need to arrive at a rate of interest that both parties
can agree to. Some personal loans may have fixed interest
rates, while the interest on mortgage loans depends on the
type of mortgage that was taken out on the property.
> read more...
Different types...
There are many different types of interest rates. To better
understand how each one works, click on the links below...
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