A basis point is a standard measurement used to define changes in interest rates. Basis points are applicable in numerous financial settings, including the stock market and consumer debt, like student or personal loans. 100 basis points is equal to 0.01%.

Many or all of the companies featured provide compensation to LendEDU. These commissions are how we maintain our free service for consumers. Compensation, along with hours of in-depth editorial research, determines where & how companies appear on our site.