interest rate
Americannoun
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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.
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.
Rising energy prices have increased the probability of either interest rate hikes or delayed cuts by central banks wary of inflation, UBS noted.
From Barron's • Mar. 31, 2026
The FCA banned DCAs in 2021, arguing they provide an incentive for a buyer to be charged a higher-than-necessary interest rate, leaving them paying too much.
From BBC • Mar. 31, 2026
The ECB left its key interest rate unchanged last week, but expects energy price rises to increase inflation and slow growth.
From The Wall Street Journal • Mar. 27, 2026
The Bank of Japan said the nation’s natural interest rate is gradually rising, suggesting room for further monetary tightening.
From The Wall Street Journal • Mar. 27, 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.
