The interest rate It is a very common concept in the financial world and refers to the cost of money or the return obtained by investing it. It is a percentage that is applied to an amount of money borrowed or invested during a certain period of time.
This concept represents the cost of money to the borrower or the return you get as a potential investorGenerally, the interest rate is expressed annually, however, It depends on the type of loan or investment, it can be done monthly or quarterly.
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The Federal Reserve Bank of San Francisco, United States, indicates that There are several factors that influence the interest rate percentagesuch as international monetary policy, inflation and the country’s credit risk.
Banking entities handle different ways of calculating interest, depending on the banking product and the economic stability of the client.
Interest rate in Colombia
In Colombia the interest rate may vary according to type of loan or investment. This percentage is determined by the Banco de la Repúblicawhich is the main bank of the country and is fixed in order to influence the economy and control national inflation.
Likewise, the interest rate of the commercial banks and other financial institutions use the rate of interest of Banco de la República to set your own interest rates.
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If you are interested in knowing the interest rate for a loan or deposit, it is important that you consult different financial entities, since each of these has its own methodology for calculating interest rates and they can vary according to the type of financial product, the duration of the loan and the credit rating of the client.
On April 28, the general manager of Banco de la República, Leonardo Villar, through a press conference informed that the interest rate as of the date would be 13.25% per yearl, however, with the behavior of the New York stock market and inflation in the country, this percentage could change in the near future.
