Disclosure statement Statement of the actual cost of a loan, including the Annual Percentage Rate and any other finance charges. The lender must provide this statement to the borrower. Fixed rate A rate of interest charged for a loan or paid to an interest-bearing deposit account that does not vary for the term of the loan or deposit. See also, variable rate. Interest Fee charged for borrowing money.
Interest is calculated as a percentage of the principal loan amount.
The rate may remain fixed throughout the life of the loan, or it may be variable and change at specified intervals. Different types of accounts and loans pay or charge different rates of interest. The minimum amount that may be required to be kept in an account each day to earn interest, avoid a service charge or qualify for special services. See also, average balance. See also, overdraft.