What is the 'interest rate'? Definition & meaning

More terms

Base rate

What's the base rate?

Collective investment scheme

Learn what's a collective investment scheme

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Venture Capital

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Withholding Tax

A tax deduction made at the source of the payment.

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority (FCA reg. no. 783189). Registered in England and Wales (no. 09797821).

Interest Rate