# How Rates Work

### How do rates work?

Rates on Varntix savings products are designed to be clear, transparent, and easy to understand before you allocate any funds.

The rate you receive depends on the product you choose, the term selected, and the conditions attached to that product.

#### Fixed Savings rates

For Fixed Savings, the rate is locked in at the time you allocate funds.

That means:

* The interest rate does not change during the selected term
* Your expected return is known upfront
* You can see the rate, term, and payment schedule before confirming your allocation

#### Flexible Savings rates

Flexible Savings products offer a fixed rate over a defined timeframe, while still allowing you to withdraw your funds at any time.

Because these products provide ongoing access to your capital, the rate is structured around the intended holding period. If funds are withdrawn before the selected timeframe is completed, your return will be adjusted to reflect the actual duration your capital remained allocated.

#### Before allocating funds

Before confirming your allocation, you will always be able to review:

* The applicable rate and corresponding timeframe
* How interest is calculated and accrued
* When interest is paid

#### Why some products offer higher rates?

Savings products with longer commitments generally offer higher rates because the capital is committed for a defined period and cannot be withdrawn early.

This allows capital to be deployed more efficiently and with greater planning certainty.

In general:

* Flexible Savings prioritizes liquidity and access
* Fixed Savings prioritizes yield certainty and structured income

For that reason, Fixed Savings often offers more competitive rates than flexible products.

#### How rates are displayed?

Varntix displays the applicable rate clearly before you confirm an allocation.

You will typically see:

* The annual percentage rate
* The product type
* The term length
* The payout schedule
* Any conditions attached to the product

This is designed to ensure investors understand exactly how the product works before committing capital.

#### Do rates change after I invest?

For Fixed Savings, no. Once your funds are allocated, the rate remains fixed for the full term.

For Flexible Savings, the rate is tied to the selected timeframe. If you withdraw early, your return will be adjusted based on how long your funds were held.

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