A fixed interest rate is a type of interest rate that remains constant throughout the life of a loan or investment. This means that the borrower or investor will pay the same interest amount over time, making it easier to budget and plan for future payments. Fixed interest rates are commonly found in mortgages, personal loans, and certain types of bonds. One of the main advantages of a fixed interest rate is stability. Borrowers are protected from fluctuations in the market, which can lead to higher payments if interest rates rise. This predictability can be particularly beneficial for long-term financial planning, as it allows individuals and businesses to manage their finances with greater confidence.