interest rate

[in-ter-ist reyt, -trist]

noun

Finance.

1. Business.,  the amount that a lender charges a borrower for taking out a loan, for maintaining a balance on debt, etc.: typically expressed as an annual percentage of the loan balance.

2. Banking.,  the amount earned on a savings, checking, or money market account, or on an investment, such as a certificate of deposit or bond: typically expressed as an annual percentage of the account balance or investment sum.

interest rate

1. The usual way of calculating interest — as a percentage of the sum borrowed.

Word History and Origins

Origin of interest rate¹

First recorded in 1885–90

Example Sentences

Given that “momentum in the labor market is to the downside,” it makes sense for the Fed to continue cutting interest rates along the lines that the central bank projected last month, she said.

Read more on The Wall Street Journal

Federal Reserve to lower interest rates are another differing factor, the analysts said.

Read more on MarketWatch

Over the past few trading sessions, interest rates for silver in London surged as dealers raced to get hold of the metal to settle positions.

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Federal Reserve officials are sharply divided about how much more to cut interest rates this year.

Read more on Barron's

Swap rates reflect the market's view of which direction the Bank of England's interest rates will go, so lenders use them to set their own rates.

Read more on BBC

Related Words

• interest