The following represent the two (2) types of loans having the "guaranteed rate for some period" characteristics:
* Fixed Loan (the interest rate is guaranteed to be the same for the entire period of the loan)
* Adjustable Rate Loan (with a defined fixed rate period is typical for mortgages and guarantees a fixed rate for 1, 3, 5, 7 or 10 years before adjusting to a new rate, typically relative to a publicly known index)
The interest rate is defined in the context of a period of time. You have not specified any time period.
Fact is simple . . . What you are really doing is loaning the bank your money to make money off of so in return for the use of your money - the bank pays you a fee - that we call interest - which is usually variable over time but can be fixed for a term or a period of time and/or the interest rate guaranteed over this time period. Quite often guaranteed interest rates on money loaned to the bank are called Guaranteed Investment Certificates or GIC's wherein the interest paid to the bank customer is guaranteed at a specific rate of interest or a fee over a period of time so that the capital or amount of money invested will be paid back in a total amount of the capital and the interest earned. However, one can find banks that will pay back the interest on a annual or monthly basis at a specific guaranteed interest rate over a specific period of time and return the original invested capital at the maturity date or the end of the agreed upon time period that the money would be lent to the bank for. Traditionally the banks in turn, loan out the same money given to them to 'others' for a specific period of time at an interest rate of 3% more than what was paid to the investor - this is commonly called 'the spread' in the banking industry.
What is beneficial about CD interest rates is that they are constant for the specified period of time. Sometimes interest rates can go up or down but CD interest rates would stay the same.
compoind interest
Book value fixed annuities pay a declared rate of interest for a specified period. No market value adjustment (MVA) is imposed if the holder withdraws assets before the end of the contract term. MVA products also pay a declared rate of interest for a specified period, and do impose such an adjustment.
The interest rate is defined in the context of a period of time. You have not specified any time period.
375 Euros for that period (not specified)
They are held as a full interest for a specified period of time. For the times you use it, the interest is undivided.
If the interest is reinvested and so itself gains interest (in the next interest period) it is compound interest.
A life annuity with period certain is a type of annuity that provides regular payments for the rest of the annuitant's life, with a guaranteed minimum payment period specified in the contract. If the annuitant dies before the guaranteed period ends, payments will continue to a beneficiary until the end of that period.
Fact is simple . . . What you are really doing is loaning the bank your money to make money off of so in return for the use of your money - the bank pays you a fee - that we call interest - which is usually variable over time but can be fixed for a term or a period of time and/or the interest rate guaranteed over this time period. Quite often guaranteed interest rates on money loaned to the bank are called Guaranteed Investment Certificates or GIC's wherein the interest paid to the bank customer is guaranteed at a specific rate of interest or a fee over a period of time so that the capital or amount of money invested will be paid back in a total amount of the capital and the interest earned. However, one can find banks that will pay back the interest on a annual or monthly basis at a specific guaranteed interest rate over a specific period of time and return the original invested capital at the maturity date or the end of the agreed upon time period that the money would be lent to the bank for. Traditionally the banks in turn, loan out the same money given to them to 'others' for a specific period of time at an interest rate of 3% more than what was paid to the investor - this is commonly called 'the spread' in the banking industry.
What is beneficial about CD interest rates is that they are constant for the specified period of time. Sometimes interest rates can go up or down but CD interest rates would stay the same.
The term "guaranteed investment" typically refers to a stock, bond, or mutual fund, wherein the owner is guaranteed a principal repayment, as well as a fixed or floating interest rate for a pre-established period of time.
compoind interest
Book value fixed annuities pay a declared rate of interest for a specified period. No market value adjustment (MVA) is imposed if the holder withdraws assets before the end of the contract term. MVA products also pay a declared rate of interest for a specified period, and do impose such an adjustment.
Book value fixed annuities pay a declared rate of interest for a specified period. No market value adjustment (MVA) is imposed if the holder withdraws assets before the end of the contract term. MVA products also pay a declared rate of interest for a specified period, and do impose such an adjustment.
Book value fixed annuities pay a declared rate of interest for a specified period. No market value adjustment (MVA) is imposed if the holder withdraws assets before the end of the contract term. MVA products also pay a declared rate of interest for a specified period, and do impose such an adjustment.