Variable rate

A "variable rate" refers to an interest rate that is subject to change, typically in response to fluctuations in money market interest rates or other external financial indicators. Variable rates can increase or decrease over time, and they are commonly applied to various financial products, such as loans (e.g., adjustable-rate mortgages) and savings accounts. The changes in variable rates are usually tied to a specific benchmark, such as a central bank's policy rate, and they reflect the prevailing economic conditions and market dynamics.