What is the difference in fix interest rate and floating interest rate in banking and which one is good?

What is the difference in fix interest rate and floating interest rate in banking and which one is good?|||Fixed is good because you know what you will be paying, but floating (or variable) can go up and down. If the rate goes down fixed is bad because you are paying more than you would do on a variable, but if the rate goes up fixed is good because you are paying less than you would have done.





Also, variable rates may not come down when they should, but almost certainly will go up so they might be bad both ways.





With mortgages fixed rates usually only last a short time, after which you get transfered to a higher variable rate, so you have to remortgage to get a better deal again.





I did some rough calculations a few years ago and decided that what I might have saved on a fixed rate was cancelled out by the costs of remortgaging. In the end the banks will make their money either way! I went for a tracker, which is a variable rate but is guaranteed to go up and down with the Bank of England rate. My mortgage went up last year, but has come down this year when many others haven't. Overall I think a tracker is the best option, but you do need enough extra income to be able to afford it if rates go up several times.|||they can both have their advantages - but a floater can slice you when the interest comes back up





a fixed rate may be a tad higher - but will never change|||the word in front defines it.fixed are the ones that do not change and floating are the ones that fluctuate go up and down.i think fixed is better than floating!