The spread between two different facilities or between spot and forward rates. (An indicator of future changes in the spot exchange rate). Français: Différence entre les taux d’intérêt Español: Diferencial de los tipos de interés

The difference in yield between two comparable instruments denominated in different currencies. Used in forward foreign exchange pricing.

In FX trading, interest rate charges are determined by the difference between the interest rate on the base currency less the interest rate on quote currency. Interest rates are only paid on positions held over night.

The difference between yields in different currencies for the same maturity.

A penalty for early prepayment of all or part of a mortgage outside of its normal prepayment terms. This is usually calculated as "the difference between the existing rate and the rate for the term remaining, multiplied by the principal outstanding and the balance of the term". Example.$100,000 mortgage at 9% with 24 months remaining. Current 2 year rate is 6.5%. Differential is 2.5% per annum. IRD is $100,000 * 2 years * 2.5% p.a. = $5,000.

IRD. Usually refers to compensation due to the lender on payout. This is the value of the difference between the contractual rate of the mortgage and the rate the lender can now get for his money. Example: A mortgage has a term of 3 years to go at 10% and now the lender can only get a market rate of 8%. You want to pay out your mortgage. The Lender may ask you to pay the difference in interest. This can add up to thousands of dollars. Payout penalties are usually quoted as the "greater" of IRD or 3 months interest penalty. Borrowers not asking about the IRD may be in for a shock if rates decline considerably.

The yield spread between two otherwise comparable debt instruments denominated in different currencies.