What is the 'interest rate'? Definition & meaning

More terms

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.

Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

Investment Trust

A company that pools money together from multiple investors and then invests it.

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).

Interest Rate