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

The Federal Reserve’s fed funds rate, which is what people usually mean when they talk about the Fed and interest rates, is the short-term rate.

From MarketWatch

He wants someone to support his overall economic agenda, which means lowering interest rates, a lot.

From The Wall Street Journal

Business and consumer spending are on an impressive upward trajectory, notwithstanding still-elevated inflation and interest rates, trade disruptions, and a cooling labor market—which also may be hotter than official data suggest.

From Barron's

Bessent has organized and supervised the vetting process, using it to define an agenda that could produce sweeping change at the central bank—and lower interest rates.

From Barron's

With the economy appearing to be in better shape than expected, investors pared their bets on another Federal Reserve interest rate cut next month.

From Barron's

Related Words

• interest