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

Its statistics are used in deciding government policy, which affects millions, and are also used by the Bank of England to make key financial decisions, such as setting interest rates.

From BBC

Miran called the independence of the central bank "paramount" and said he had not been asked by anyone at the White House to commit "formally or informally" to lowering interest rates.

From BBC

He told the Treasury Committee that interest rates had been rising "across the developed world".

From BBC

On domestic interest rates, Mr Bailey told the committee said there was now less certainty about how quickly the Bank would continue to make cuts.

From BBC

Elevated interest rates recently have weighed on prices by making it difficult for building owners to refinance debt, pushing them into quick sales or foreclosures.

From Los Angeles Times

Related Words

• interest