2 min read
Definition
A teaser rate is a promotional interest rate set deliberately low to win business, after which it reverts to a far higher reversion rate or SVR. It resembles a discounted rate but is often marketed more aggressively, and the step-up can be sharp.
In plain terms
The eye-catching rate is bait; the real cost shows up when the promo ends. Judge the deal on the standard rate, not the teaser.
Why it matters for your company
Look past the teaser to the go-to rate and the total cost over a realistic holding period. See reversion rate and discounted rate.
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Reversion rate
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Discounted rate
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Standard variable rate (SVR)
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Advance rate
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