a generic tag for question on rate of interest applicable. Ideally should be accompanied by geography tag and other specific subject tags

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1
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1answer
30 views

Bond strategies for a steepening yield curve?

If it is believed that the yield curve is going to steepen very soon, it may be fall in short-term rates, a rise in long-term rates, or some combination of these. What strategy should you pursue in ...
2
votes
1answer
76 views

Pay down a big loan or pay off a small one? [duplicate]

I have two student loans I would like to pay off: A: $6000 - 6.5% B: $3000 - 6.5% I am receiving a tax refund of a bit over $3000. I am not sure whether to pay off B in one fell swoop to get it ...
2
votes
2answers
42 views

Calculate APY revolving loan with offset/staggered payment schedule?

I want to buy a weekly meal ticket, 7 lunches for $7, but do not have $7 today. Lender says, "I will loan you a consecutive series of 5 meal tickets for 5 consecutive weeks (35 consecutive lunches as ...
0
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2answers
183 views

Should I take out a bigger mortgage, or pay a greater cash deposit?

Let's say I want to buy a house worth £400k. I can get a mortgage up to £300k, and I have £150k cash sitting in the bank. Which would be my best option: 1) Take out the maximum mortgage of £300k and ...
1
vote
2answers
190 views

Should I overpay to end a fixed-rate mortgage early? [duplicate]

About six years ago, UK interest rates hit the historic low of 0.5%. In keeping with all the finiancial advice at the time that this was a once in a lifetime circumstance I rushed out and got a fixed ...
8
votes
3answers
711 views

Downside to temporarily lowering interest rates?

American Express sent me a promotional offer to lower the interest rate on my credit card for 12 months. I don't carry a balance on any credit cards. I can't think of a good reason to accept this ...
1
vote
2answers
93 views

Credit Unions vs Bank Mortgage

I am a first time home buyer. My home-buying credit score is 620. I was recently preapproved for an FHA loan with my bank. The interest rate is decent at 3.75%, the only issue is I will have to pay ...
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2answers
126 views

How to get rid of bad credit cards without impacting credit report

I have two bad credit cards, one at 11.8% + Prime (working out to about 18%+) and another recently raised to 30% (card issuer swears they did this on every cardholder, and that I'm a member in good ...
3
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1answer
83 views

What is the interest rate on my US Savings Bonds?

I have received US Savings Bonds as gifts throughout my life from my birth, to birthdays, to high school graduation. My understanding is that some EE Series US Savings Bonds have a fixed interest rate ...
0
votes
1answer
24 views

Lowest Interest Options for Short-Term Loan

I am looking for a short-term loan in the amount of $15k to buy some household items. I will be able to return the money in full by 3 months I have a credit score of 760+. Currently, I am seeing ...
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votes
1answer
73 views

Can banks borrow 0% interest rate loans for overnight speculations? [closed]

I was wondering if banks have the ability to borrow money overnight for speculations at 0% interest rates. Also, would third party providers have access to these short term or overnight loans?
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3answers
110 views

Is it normal that US Treasury bills(0.07%) yield smaller than interest rate(0.25%)?

I assume that under stable economy, US bonds with longer maturities should yield more. However, the current 3 month bill yields 0.07%( 0.23% for 6 months bills), which is below the overnight interest ...
2
votes
2answers
60 views

How flexible is the loan industry?

I'm wondering how flexible loan officers (or departments) are to providing better rates for more information. For example, is something like a 1% reduction in rate for an auto loan be a reasonable ...
2
votes
1answer
52 views

Future Value of an annuity

If I pay 4 half-yearly installments in an investment scheme or I pay monthly installments of the same time (2 years). Interest rate in both cases is 9% compounded monthly. What will be my future value ...
0
votes
1answer
31 views

Interest rate movements and business decisions [closed]

I read the following statement in my study guide: Wrong decisions, such as using short-term debt to finance long-term projects just before interest rates rise, can be very costly. Why would this be ...
-1
votes
1answer
35 views

how banks hedge interest risk and default risk [closed]

this is probably a naive question. Is it true that banks always prefer to borrow short and lend long liabilities? If so, interest rate on long term loans fluctuate over time. how do banks hedge the ...
2
votes
3answers
192 views

Basic understanding of bonds, values, rates and yields

I'm looking for a very simplistic (ELI5) explanation of how bonds work, but I'm not sure I have the basics correct. As I understand it, a bond is basically a IOU or loan. Any company, government or ...
34
votes
9answers
8k views

How to rescue my money from negative interest?

My bank has announced negative interest rates starting Q1 2016. I have CHF 250'000 in that savings account (Swiss Francs). Now, pretty much all other banks will probably follow suit soon, if they ...
-1
votes
1answer
41 views

What are the formulas for these? [closed]

What are the formulas for the following? Overall increase given the percentages: a, b, c, d Future value of a one-time deposit given the amount of the one time deposit, APR, length of time, and ...
0
votes
1answer
150 views

How can I get more interest than the 2.8% my bank is offering me on my $60,000 AUD? [closed]

I have recently been given a $60,000 AUD for the deposit on a house. I have since discovered that I am not earning enough to get a good enough mortgate. I think if I wait a couple of years I'll be ...
3
votes
2answers
104 views

How does inflation rate affect debt payoff strategy?

When reading a comment by user Philipp on this answer, he states: [W]hen the debt is in a currency which has an average inflation rate larger than the interest [in this case 0%], you essentially ...
10
votes
3answers
167 views

What exactly is the interest rate that the Fed is going to adjust?

Lately, the financial press talks non-stop about the Fed doing this and that to the interest rate. What exactly is this interest rate that the financial press is talking about? Why is this Fed ...
1
vote
1answer
86 views

Calculating average interest rate with intermittent deposits

I invest in a few medium to low risk accounts online (peer to peer loans and buy to let property crowdfunding). I make regular deposits into these accounts, usually when the monthly salary comes in, ...
1
vote
1answer
41 views

Determining annual inflation rate from bimonthly cpi growth rate?

I've been unable to find a concrete answer to this question so I assume I am overlooking something incredibly simple. In order to determine the real interest rate, I am required to use the nominal ...
1
vote
1answer
80 views

If/When the Fed raises the interest rate, how much will this affect my ARM?

I have a home equity line of credit with an adjustable rate. Currently (as it has been for quite some time), it's sitting at 3.5%. I understand that we're not sure how much interest rates will rise, ...
3
votes
1answer
271 views

Anyone have experience with Brink's 5% savings account?

If you get a Brinks prepaid MasterCard (no initial fees, and you can even get a $20 signup bonus) and go through some other gyrations, you can presumably get access to a 5% FDIC-insured savings ...
0
votes
1answer
52 views

Will interest rates on bank deposits ever fall close to 0 percent in India? [closed]

I wanted to know if interest rates will ever fall to close to 0 percent in India. + I would like to know that as close to 0 interest rates might affect the income earned through debt instruments at ...
0
votes
2answers
104 views

Savings account with fixed interest or not?

Me and my wife are renting our apartment and we're both students with part time jobs. We are saving up for a condo more suitable to our needs, we would like to have our down payment within five years. ...
1
vote
1answer
81 views

Strategy to save the most on interest

I'm planning on applying for a credit card that offers 0% APR on balance transfers for 15 months and $0 balance transfer fees. I'm thinking on using this card to pay down some of my student loans. ...
0
votes
1answer
79 views

Compounded and Simple Interest Rates

Suppose we have a loan worth 10000 that is being repaid late as a lump sum on a given day 30 days after the due date. Suppose the original interest rate is 5% so that the amount owed before late ...
0
votes
1answer
100 views

Shouldn't nominal interest rates be illegal? [closed]

First of all, I'm really new to anything related to financial math and the like, but I just can't get my head around these nominal interest rates. The way I'm getting it is that it's just a euphemism ...
2
votes
1answer
117 views

How do rate locks work when buying a property?

We recently "locked" our rate on a rental property we are buying at 4.875. A day later, drops back down to 4.625. Can we no longer get the 4.625? Are we "locked" in at that rate thru closing?
5
votes
4answers
782 views

Is it possible to get a 3% yield that is FDIC insured or super low risk?

I just graduated from college and i am already planning my retirement. I know about 401k and i have that figured out already but in terms of money sitting in my bank account post retirement, assuming ...
3
votes
3answers
130 views

Is this Employee Stock Purchase Plan worth it when adding my student loan into the equation?

Here are the details of my company's Employee Stock Purchase Plan: An automatic 5% purchase discount off the fair market value of the stock. Payroll deductions start on July 1st. The stock purchase ...
2
votes
1answer
68 views

Effective Interest Rate Interpretation

Assume a $1,000 loan for 24 months, with monthly interest rate 2.5%, and monthly payments ($55.91 as calculated by any online tool, e.g. here). This will give us annual interest rate (air) of 30%, ...
2
votes
3answers
123 views

Are a bond's yield and interest rate the same thing?

Are they the same thing? Is yield the annualized return rate? Why when yield rise, yearly return increases, but price falls?
3
votes
1answer
71 views

Investments minimally affected by Federal Reserve rate increases?

What short term investment instruments would be a good option when the Federal Reserve funds rates are anticipated to rise? My understanding is bonds will decrease in value since the newer bonds with ...
1
vote
1answer
69 views

Do we pay interest rates when holding a bond?

When we try to find the present value of a bond I understand we should discount the coupon payments and the face value by the ''current interest rates''. My question is what are these interest rates? ...
1
vote
1answer
78 views

Are Target Funds Unsafe - Post Q.E.?

It appears that Target Funds are becoming more common for employer sponsored plans, and these are billed as a safe way to prepare for retirement. For people who plan to retire over the five to ...
3
votes
5answers
219 views

What does “interest rates”, without any further context, generically refer to?

There's an old Far Side cartoon where someone discovers a guy in a room full of telephones behind a door labeled 'They' and shouts something like "MORTIMER STANLEY! So you're the they in 'That's what ...
0
votes
1answer
218 views

Why does a high inflation strengthen a country's currency? [closed]

A low interest rate increases money supply, which leads to high inflation. Now, how does that high inflation automatically translate into strengthening of the country's currency? If anything, because ...
3
votes
1answer
161 views

Low-interest 30yr mortgage - can the bank pull a fast-one?

I'm on the cusp of signing a 30-year fixed mortgage at 3.8% interest (I might even be able to negotiate it down to 3.6%). Looking at historical interest rates, it's a dead-certainty that interest ...
2
votes
2answers
1k views

Is APR the same as Interest Per Annum?

I'm a tester working for a high cost, short-term loan credit company in the UK. Recently, the Financial Conduct Authority (FCA) issued a policy on statements which includes information on how they ...
0
votes
3answers
175 views

Is buying puts on a ten-year treasury ETF a good way to hedge mortgage rates?

I'm looking to hedge against rising thirty-year mortgage rates for the short term while we are house shopping. Would buying an appropriate number of put options on something like IEF (iShares ...
0
votes
0answers
505 views

Car loan - Hard inquiry and credit score hit

I recently purchased a new car. Total outdoor price is 20K. I paid 6K and financed the rest. Before I walked into the dealership, I had a preapproved loan from the only bank I applied. It was around ...
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votes
3answers
245 views

How can banks pay interest on money they borrow from the FED? [closed]

I'm not sure if this is the right site to ask this question. If it's not, please point me in the right direction. So, if the FED is the only institution that can increase the monetary base (create ...
0
votes
1answer
47 views

Rate used for approval on a 5/5 ARM?

When applying for a 5/5 ARM with a 2% cap each adjustment, a 6% lifetime cap, that starts out at 2.5%, what rate will the lenders generally use to qualify you for the loan when computing your debt to ...
1
vote
1answer
32 views

'longer-term/lower-coupon bonds' vs 'shorter-term/higher-coupon bonds'

[Source:] Arthur Salzer, B.A. Econ. (McMaster University), CFA, CIM “Remember that longer-term/lower-coupon bonds go down more in price than shorter-term/higher-coupon bonds do when interest ...
0
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1answer
27 views

'When the rising rate cycle gives way to a decline in borrowing costs, bond funds will …'?

[Source:] Bonds fall in value when rates rise, and this will be reflected in the unit price of bond funds. When the rising rate cycle gives way to a decline in borrowing costs, bond funds will rise ...
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0answers
48 views

Estimating rates on potential loans without officially applying

Is there any way to estimate the rates on a potential loan without applying? I'm thinking of some calculator that takes into account: Loan type (auto/revolving/installment/mortgage/etc) Your income ...