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.
Japan's central bank has increased its main interest rate to a new 31-year-high after a surge in global energy prices.
From BBC • Jun. 16, 2026
That will be its first interest-rate hike since December, taking its benchmark interest rate to 1%, the highest level since 1995.
From Barron's • Jun. 15, 2026
Traders cut back on expectations of interest rate hikes.
From The Wall Street Journal • Jun. 15, 2026
A fixed-rate annuity pays a set interest rate for a certain number of years.
From MarketWatch • Jun. 12, 2026
In exchange, he received a higher interest rate.
From "The Big Short" by Michael Lewis
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.
