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Glossary

Interest rate

The price of money, before fees.

An interest rate is the percentage a lender charges, or a bank pays, on a balance over a year. It excludes fees, which is what separates it from APR on a loan and from APY on savings.

Fixed rates stay put for the life of the loan. Variable rates move with a benchmark such as prime or the Fed funds rate.

Today, in real numbers

The Federal Reserve's policy rate is 3.63% today, and nearly every other rate on this page is priced off it.

See the fed funds page
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