variable rate
Definitions
An interest rate on a loan or security that fluctuates over time based on an underlying benchmark index or market conditions.
A pricing structure for services or utilities where the cost per unit changes according to specific factors such as time of day, usage volume, or demand.
Examples
Many homeowners prefer a fixed mortgage, but others choose a variable rate to take advantage of potential interest rate drops.
The bank offers a variable rate loan that adjusts periodically based on current market conditions.