interest rate

American  

[in-ter-ist reyt, -trist] / ˈɪn tər ɪst ˌreɪt, -trɪst /

noun

Finance.

interest rates plural

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.

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interest rate Cultural  

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

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Other Word Forms

Noun Inflected Forms

• interest rates
  plural

Etymology

Origin of interest rate

First recorded in 1885–90

Compare meaning

How does interest-rate compare to similar and commonly confused words? Explore the most common comparisons:

• discount rate vs. interest rate

Example Sentences

See Examples For:

interest rate

Seoul led gains across Asian equity markets Wednesday as tech firms bounced back following a softer-than-expected US inflation print that soothed worries about a possible interest rate hike this month.

From Barron's ● Jul. 15, 2026

Cook said the Fed's rate-setting committee "can take its time" to observe data while deciding on interest rate adjustments.

From Barron's ● Jul. 15, 2026

The escalation has already led analysts to predict that inflation will rise in the coming months and that interest rate cuts are unlikely anytime soon.

From BBC ● Jul. 14, 2026

That was up from 19% at the start of 2022, when the Fed began raising its benchmark interest rate.

From MarketWatch ● Jul. 14, 2026

The buyer of the second tranche—the second story of the skyscraper—took the next wave of prepayments and in exchange received the second highest interest rate, and so on.

From "The Big Short" by Michael Lewis

Related Words

• interest