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.

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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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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

Despite the absence of signs that wage growth is accelerating, investors expect the ECB to raise its key interest rate for a second time since the conflict began when policymakers next meet in September.

From The Wall Street Journal ● Jul. 29, 2026

Nevertheless, it doesn’t expect the central bank to raise its key interest rate, having in April forecast one increase in borrowing costs this year to 4% from 3.75%.

From The Wall Street Journal ● Jul. 28, 2026

Bank Indonesia has lifted its key interest rate by 100 basis points so far this year to 5.75 percent.

From Barron's ● Jul. 27, 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

Since Iceland’s interest rate at that time was higher than Switzerland’s, it’s curious why Bobby didn’t want the transfer.

From "Endgame" by Frank Brady

Related Words

• interest