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.

---

interest rate Cultural  

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

---

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

The practice is known as “forward guidance,” a tool the Federal Reserve economists use to communicate their future interest rate intentions.

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

Signs of a pickup in expected inflation will concern BOE policymakers, who meet next week to set policy and are expected to leave their key interest rate at 3.75%.

From The Wall Street Journal • Apr. 24, 2026

Enter Sosin, with his supposedly new and improved interest rate swap model—even though Drexel Burnham was not at the time a market leader in interest rate swaps.

From "The Big Short" by Michael Lewis

Related Words

• interest