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 Fed also will have to tolerate more volatility in overnight interest rates.

From The Wall Street Journal

The move, however, coincides with data showing a surprisingly resilient job market, stubborn inflation pressures, tariff uncertainty, and hawkish messaging on interest rates from the Federal Reserve.

From Barron's

Given lower interest rates and a decline in the dollar, the rally has broadened, and more stocks are now doing better.

From Barron's

They can be influenced by a variety of things — such as the outlook for the U.S. economy and inflation, expectations for the path of interest rates, and rising geopolitical risks in the Middle East.

From MarketWatch

Corrections & Amplifications The Federal Reserve cut interest rates three times in the second half of 2025.

From The Wall Street Journal

Related Words

• interest