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

Market focus is also on the European Central Bank rate decision due at 1215 GMT, where an interest rate increase is expected.

From The Wall Street Journal • Jun. 11, 2026

But Isaac Stell, investment manager at asset manager Wealth Club, said an interest rate hike is "the most logical conclusion from today's data combined with last week's blow-out jobs numbers".

From BBC • Jun. 10, 2026

Industrials were the biggest laggard on Wednesday, dragged down by a swirl of other factors including rising oil prices, and expectations of a Fed interest rate hike.

From Barron's • Jun. 10, 2026

The odds are overwhelmingly in favor of policymakers keeping the benchmark interest rate at the target range of 3.50% to 3.75% at the conclusion of the June 16-17 policy meeting.

From Barron's • Jun. 8, 2026

The top floors got their money back first and so got the highest ratings from Moody’s and S&P and the lowest interest rate.

From "The Big Short" by Michael Lewis

Related Words

• interest