Effektivzins
effective annual interest rate (APR)
noun eh-fek-TEEF-tsins Rare
Usage Note
Effektivzins (= effektiver Jahreszins) is the true annual cost of a loan including fees, as required to be disclosed in EU credit law. Higher than the nominal Sollzins.
Examples
"Beim Kreditvergleich sollte man immer den Effektivzins betrachten."
Natural Translation
When comparing loans one should always look at the effective interest rate.
Literal Translation
When the credit-comparison should one always the effective-interest consider.
Related Words
Explore German by topic
GermanNow
6 min read