What is the 'interest rate'? Definition & meaning

More terms

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.

NYSE

The world's largest stock exchange. Wall St HQ.

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Costs and Charges

The money you pay when investing.

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Interest Rate