"Quarterly rate": The quarterly rate of interest (or yield) is a quoting convention for the simple interest nominal annual rate for compounding once per quarter (four times per year). For example, if the quoted quarterly rate is 6. 00%, the amount of interest compounded quarterly is 6. 00%/4 = 1. 50%. Not to be confused with the related annual effective rate, which in this case is 1. 0154 - 1 = 6. 14%.