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

This can also help your finances, since credit unions often offer higher interest rates on savings accounts than major banks.

From Salon

But the path of inflation going forward is unusually uncertain and Bank of England officials, who decide whether to raise or cut interest rates, are divided.

From BBC

The impact for homeowners is that fixed mortgage rates have actually been creeping up, despite the latest interest rate cut.

From BBC

However, the rate, which is closely monitored to determine interest rates, is now back above the Bank of England's 2% target.

From BBC

A preelection survey from the Wall Street Journal found most economists believed inflation and interest rates would be higher under policies proposed by Trump than Vice President Kamala Harris.

From Los Angeles Times

Related Words

• interest