Glossary - honeymoon or introductory interest rate

honeymoon or introductory interest rate

An interest rate offered for a short time at the start of a loan, credit card or savings account. For a loan it is a lower interest rate that will eventually revert back to a standard rate. For savings accounts it is a higher rate that will revert back to a standard deposit interest rate after the honeymoon period.

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Last updated: 18 Nov 2015