interest rate

American  

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

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.

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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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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

The minutes will also detail views on the interest rate path, with a planned cut now less certain due to tighter financial conditions.

From Barron's • Apr. 8, 2026

The ECB last month left its key interest rate unchanged at 2%, but set out a number of ways in which developments in the conflict might affect the eurozone’s economic outlook.

From The Wall Street Journal • Apr. 7, 2026

The government imposes caps when it thinks inflation, and therefore the interest rate, will grow too high.

From BBC • Apr. 7, 2026

Uncertainty about the war's economic shock has so far led policymakers at the Federal Reserve to adopt a wait-and-see approach on interest rate moves, as they balance curbing stubbornly high inflation with managing unemployment.

From Barron's • Apr. 3, 2026

Chrysler might sell its bonds and simultaneously enter into a ten-year interest rate swap transaction with Morgan Stanley—and just like that, Chrysler and Morgan Stanley were exposed to each other.

From "The Big Short" by Michael Lewis

Related Words

• interest