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.
They cut a key U.S. interest rate three times late last year to make sure the labor market didn’t get any worse.
From MarketWatch • Apr. 3, 2026
The conflict upended Federal Reserve interest rate cut bets, with odds of two cuts by year-end dropping from 80% to less than 2%.
From The Wall Street Journal • 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
Bond markets are pricing in three interest rate hikes by the European Central Bank and the Bank of England in 2026 and no cuts by the Federal Reserve.
From Barron's • Mar. 31, 2026
“At a low, low interest rate of six percent a month. That would make your monthly payment, after a reasonable down—”
From "Do Androids Dream of Electric Sheep?" by Philip K. Dick
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.
