interest rate
Americannoun
-
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.
-
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
Compare meaning
How does interest-rate compare to similar and commonly confused words? Explore the most common comparisons:
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.
The odds are overwhelmingly in favor of policymakers keeping the benchmark interest rate at the target range of 3.50% to 3.75% at the conclusion of the June 16-17 policy meeting.
From Barron's • Jun. 8, 2026
However, Citi research analysts say the RBI has signaled its willingness to wait until second-round inflation effects are apparent, and interest rate defense of the currency would be a last resort.
From The Wall Street Journal • Jun. 5, 2026
The hot reading increased the odds of an interest rate hike later this year, and sent bond yields higher.
From Barron's • Jun. 5, 2026
The central bank cut its key interest rate for an eighth straight meeting, and said further reductions were possible despite a jump in oil prices.
From The Wall Street Journal • Jun. 5, 2026
The top floors got their money back first and so got the highest ratings from Moody’s and S&P and the lowest interest rate.
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.
