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 ECB announces its latest policy decision Thursday, and investors expect it to leave its key interest rate at 2%.

From The Wall Street Journal • Apr. 28, 2026

The ECB is not expected to announce an interest rate hike, but "every word will be scrutinized for any potential shift in tone regarding this persistent energy shock," said John Plassard of Cite Gestion.

From Barron's • Apr. 28, 2026

Marriott, which operates higher-end brands, says its average loan was $31,000 last year with an interest rate of nearly 13% and monthly payments around $500.

From The Wall Street Journal • Apr. 28, 2026

"The Bank of Japan left its key interest rate unchanged but signalled that it would be keeping a very close eye on inflation dynamics," said analyst Andreas Lipkow at CMC Markets.

From Barron's • Apr. 28, 2026

He recited the line from memory: “‘The Lomas Financial Corporation is a perfectly hedged financial institution: it loses money in every conceivable interest rate environment.’

From "The Big Short" by Michael Lewis

Related Words

• interest