interest rate

[ in-ter-ist reyt, -trist ]
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nounFinance.
  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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Origin of interest rate

1
First recorded in 1885–90
  • Also called rate of in·ter·est [reytuhv in-ter-ist, -trist] /ˈreɪt əv ˈɪn tər ɪst, -trɪst/ .

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Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2024

How to use interest rate in a sentence

Cultural definitions for interest rate

interest rate

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

The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.