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

The BOJ official caused a stir in global markets by suggesting that the central bank could raise interest rates again as soon as later this month.

From MarketWatch

Oliver Allen, economist at Pantheon Macroeconomics, said the gradual easing of tariff-related uncertainty, lower interest rates and an investment boost from tax incentives could lift manufacturing output slightly in the first half of next year.

From The Wall Street Journal

That’s when investors borrow money in Japanese Yen, which has lower interest rates than other currencies, before converting it into another currency to buy potentially high-yielding assets such as cryptocurrencies.

From Barron's

Their possible returns also depend on interest rates—lower rates typically mean less in possible gains.

From The Wall Street Journal

It should also have a real interest rate, payment schedule, and be structured to avoid Medicaid problems.

From MarketWatch

Related Words

• interest