interest rate

American  

[in-ter-ist reyt, -trist] / ˈɪn tər ɪst ˌreɪt, -trɪst /

noun

Finance.

interest rates plural

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.

---

Other Word Forms

Noun Inflected Forms

• interest rates
  plural

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

See Examples For:

interest rate

Add a 3% real interest rate to roughly 7% inflation generated by rapid wage growth and the arithmetic becomes uncomfortable.

From MarketWatch ● Jul. 24, 2026

However, ECB President Christine Lagarde Thursday said there were as yet no signs of that broadening of inflationary pressures after policymakers left their key interest rate unchanged at 2.25%.

From The Wall Street Journal ● Jul. 24, 2026

At the end of 2025, the weekly national average interest rate for 30-year fixed mortgage loans in the U.S. was 6.15%, according to Freddie Mac.

From MarketWatch ● Jul. 24, 2026

The prospect of higher oil prices putting upward pressure back on inflation has raised the spectre of a Federal Reserve interest rate hike.

From Barron's ● Jul. 23, 2026

Chrysler might sell its bonds and simultaneously enter into a ten-year interest rate swap transaction with Morgan Stanley—and just like that, Chrysler and Morgan Stanley were exposed to each other.

From "The Big Short" by Michael Lewis

Related Words

• interest