interest rate

[in-ter-ist reyt, -trist]

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

1. The usual way of calculating interest — as a percentage of the sum borrowed.

Word History and Origins

Origin of interest rate¹

First recorded in 1885–90

Example Sentences

The subject wasn’t inflation, or interest rates, or the president’s attempts to fire him, but the current stock-market mania over artificial intelligence.

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ISM survey data will be closely watched as investors assess whether or not the Federal Reserve will cut interest rates again in December.

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It caters to companies that offer technologically friendly savings accounts for everyday people with sweeteners like high interest rates.

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“I would have preferred to hold interest rates steady,” Logan said, according to a published version of her remarks.

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Despite a recent selloff, gold has gained 53% for the year, driven by central bank purchases and lower interest rate expectations.

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Related Words

• interest