Bank related flate rate in the banking sector

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Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2012 what do u mean & importance of the flate rate in the banking sector?
is it mean to fixed interest rate?

Ca Anand Dubey

Ca Anand Dubey (Expert)
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22 June 2012 Interest is always calculated on reducing balance method and the is actual rate of Interest . On that basis bank official explain flat rate as it looks lesser than actual rate but amount of Interest is same. Flat rate does not mean fix rate and it is calculated in both cases (floating and/or fix interest rate)