Meaning & use

interest rate

noun·Academic

The percentage of a loan or deposit charged or paid over a set period, usually a year.

See it in a sentence

The bank raised its interest rate on savings accounts to attract more customers.

A lower interest rate on the mortgage saved the couple thousands of dollars.

A note on using this word

Central banks adjust national interest rates to influence borrowing, spending, and inflation.

Words with a similar meaning

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