interest rate
Americannoun
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interest rates
plural
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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.
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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.
Other Word Forms
Noun Inflected Forms
Etymology
Origin of interest rate
First recorded in 1885–90
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Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
When issued by parents, a piggyback loan can lower borrowing costs if they charge a lower interest rate than commercial lenders, though the primary mortgage lender must approve the arrangement.
From The Wall Street Journal ● Oct. 11, 2026
Instead of gifting the money for the purchase, Ross provided the mortgage at a lower interest rate by using the IRS-standard applicable federal rate and is generating a stable return on his investment.
From The Wall Street Journal ● Oct. 11, 2026
Comments from Fed officials cemented expectations for another interest rate hike before the end of the year, though this month appears unlikely.
From Barron's ● Oct. 9, 2026
The maximum interest rate charged on Plan 2 loans is capped.
From BBC ● Oct. 8, 2026
If Morgan Stanley went bust, Chrysler, along with anyone else who had done interest rate swaps with Morgan Stanley, stood to suffer.
From "The Big Short" by Michael Lewis
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
