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.

---

interest rate Cultural  

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

---

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

Amid fears of stagflation, persistently high interest rates and a weakening labor market, our mood changes almost on a daily basis.

From The Wall Street Journal

Before the conflict, interest rates set by the Bank of England - which underpin borrowing rates for homebuyers - had fallen over the course of last year and had been expected to fall further this year.

From BBC

Consumers expect higher inflation and interest rates in coming months.

From The Wall Street Journal

A loss of investor confidence in Treasurys could cause interest rates to rise sharply, hitting housing, business investment, and stock markets, and potentially causing a recession.

From The Wall Street Journal

WSJ | Buy Side: Some personal loans charge no origination fee, but compare interest rates and other terms to get a good deal.

From The Wall Street Journal

Related Words

• interest