What is a basis point (bps)? The unit behind rates and fees
By SendPay Business · · 2 min read
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A basis point, written bp or bps, is one hundredth of one percent, or 0.01%. It's how finance talks about small changes in interest rates, exchange rate margins and fees without confusion.
How to convert basis points
- 1 basis point = 0.01%.
- 10 basis points = 0.1%.
- 50 basis points = 0.5%.
- 100 basis points = 1%.
Why not just say percent?
Saying a rate rose by 1% is ambiguous: it could mean from 4% to 5%, or from 4% to 4.04%. Saying it rose by 100 basis points is clear. That's why central banks and lenders use bps when announcing rate changes.
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Where you'll see bps
Central bank rate decisions, loan and savings rates, bond yields, card scheme and interchange fees, and the markup a provider adds to an exchange rate are all often quoted in basis points.
Where SendPay fits
SendPay platforms let you set your own exchange fee on GBP, EUR and USD accounts, alongside transfers and branded Visa cards under your own brand, powered by licensed partners.
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
How do I convert basis points?
Turn bps into percent and money on any amount, free.
Basis point calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.