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

That’s even though the average interest rate on the $39 trillion accumulated public debt has held relatively steady for the past two years, according to Stephanie Pomboy’s latest MacroMavens missive.

From Barron's • Apr. 24, 2026

A former Fed governor during the financial crisis, Warsh later emerged as a critic of the central bank’s prolonged low interest rate policies and heavy-handed market interventions.

From Los Angeles Times • Apr. 24, 2026

Comparing multiple lenders and looking beyond just the interest rate to the full breakdown of fees and terms can make a meaningful difference, she said.

From MarketWatch • Apr. 24, 2026

The sales data is the last big economic indicator to be released before the Bank of Canada’s interest rate decision Wednesday.

From The Wall Street Journal • Apr. 24, 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