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 products like mortgages and personal loans. 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 costs if interest rates rise. This predictability can be beneficial for long-term financial planning and helps individuals manage their finances more effectively.