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

This increases concerns over longer-term inflation risks as it could mean interest rates are reduced in future despite inflationary pressure, putting even greater focus on Tuesday’s U.S. inflation data.

From The Wall Street Journal

Its main tool in doing so is by setting a key interest rate that influences the cost of borrowing across the economy, while its board members typically serve under both Republican and Democratic presidents.

From Barron's

In the second half of 2025, the Fed cut interest rates three times.

From BBC

Chair Powell stated the criminal charges are a consequence of the Federal Reserve setting interest rates independently, not due to his testimony or office renovation.

From Barron's

Chair Powell stated the criminal charges are a consequence of the Federal Reserve setting interest rates independently, not due to his testimony or office renovation.

From Barron's

Related Words

• interest