What is the meaning of floating interest rate?

floating interest rate is an interest rate that, instead of being a fixed percentage, is stated as an amount above or below another rate, such as the prime rate. The interest rate moves up or down in relation to the rate of the controlling index.

4
 
|15 years ago|284 views|share |citing 
APABarry Goldsmith. (2010). floating interest rate. Retrieved September 25, 2026, from http://smartdefine.org/floating_interest_rate/definitions/1154245
ChicagoBarry Goldsmith. 2010. "floating interest rate" http://smartdefine.org/floating_interest_rate/definitions/1154245 (accessed September 25, 2026).
HarvardBarry Goldsmith 2010, floating interest rate, Smart Define, viewed 25 September, 2026, <http://smartdefine.org/floating_interest_rate/definitions/1154245>.
MLABarry Goldsmith. "floating interest rate" 21 October 2010. Web. 25 September 2026. <http://smartdefine.org/floating_interest_rate/definitions/1154245>