What is the 'interest rate'? Definition & meaning

More terms

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

After-hours trading

Trading outside of a stock exchange's opening hours.

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.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.

Total Return

This is the measurement of a fund’s performance in a specific period.

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

Dirty price

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

Interest Rate