Meaning & use
fixed rate
Last updated
Meanings
nouncountablefinance
An interest rate or price that stays the same for an agreed period, however much the market changes.
Grammar: Usually with a: we got a fixed rate of four percent.
Patterns
- a fixed rate of something
- on a fixed rate
They locked in a fixed rate of four percent for five years.
With a fixed rate, your payments will not change if the bank raises its lending rate.
The savings account offers a fixed rate for twelve months.
adjectivebefore a nounfinance
Describing a loan, deal or charge with an interest rate or price that does not change during the agreed period.
Grammar: Appears before a noun and is usually hyphenated: a fixed-rate mortgage.
Patterns
- a fixed-rate mortgage
- a fixed-rate loan
A fixed-rate mortgage makes it easier to plan your monthly budget.
She chose a fixed-rate loan to avoid surprises.
The bank is offering a three-year fixed-rate bond.
Word forms
| plural | fixed rates |
|---|
Common combinations
- fixed-rate mortgage
- Their fixed-rate mortgage ends after two years.
- lock in a fixed rate
- He locked in a fixed rate before rates went up.
- five-year fixed rate
- The bank advertised a five-year fixed rate.
- switch to a fixed rate
- We switched to a fixed rate to protect our budget.
- fixed-rate loan
- A fixed-rate loan suits people who like certainty.
- fixed-rate bond
- The fixed-rate bond pays the same interest every year.
Synonyms and how they differ
- flat rate
- A flat rate is a single charge that does not vary with use, and it is not necessarily about interest.
- fixed interest
- Fixed interest says the same thing about borrowing or saving but is more formal and less often used for prices.
- locked-in rate
- A locked-in rate stresses that you secured the rate in advance, often before a deadline.
Opposites
Word family
Commonly confused: fixed rate or flat rate?
fixed rate vs flat rate
A flat rate is a single charge regardless of use, while a fixed rate is an interest rate or price that is guaranteed not to change for a period.
Practice
With a ___ mortgage, your monthly payment stays the same even if market rates rise.
Choose one answer.
A fixed-rate mortgage keeps the same interest rate for the agreed period. The other options describe rates that can move with the market.
Make it your own
Write a sentence using “fixed rate”, then check it and compare it with the examples above.