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

Megan notes that the data vindicate Fed officials’ decision to keep interest rates steady at the January meeting.

From Barron's

Megan notes that the data vindicate Fed officials’ decision to keep interest rates steady at the January meeting.

From Barron's

Federal Reserve governor Stephen Miran said he still thinks that an argument can be made for cutting interest rates following the better-than-expected January jobs report.

From The Wall Street Journal

This provides support for Federal Reserve officials who have voted to keep interest rates unchanged for the time being, said Mortgage Bankers Association chief economist Mike Fratantoni.

From Barron's

However, the higher interest rate forecasts tied to an improving labor market added to pressures on heavyweight tech stocks, including the beaten-down software sector, and the S&P 500 reversed its early gains.

From Barron's

Related Words

• interest