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  1. Dictionary
    interest rate

    noun

    • 1. the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding: "reduced interest rates encourage people to spend money on home improvements"

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  2. www.investopedia.com › terms › iInterest Rates: Different Types and What They Mean to Borrowers

    Feb 23, 2024 · The interest rate is the amount charged on top of the principal by a lender to a borrower for the use of assets. An interest rate also applies to the amount...

  3. www.financestrategists.com › banking › interest-rateInterest Rate | Definition, Calculation, & Factors That Affect It

    Mar 31, 2024 · An interest rate is the percentage of principal a lender charges for using its funds. The principal is the amount of cash granted. Borrowers pay interest as compensation for using a lender’s money. Banks also pay interest rates as a reward for saving money.

  4. dictionary.cambridge.org › dictionary › englishINTEREST RATE | English meaning - Cambridge Dictionary

    INTEREST RATE definition: 1. the interest percent that a bank or other financial company charges you when you borrow money…. Learn more.

  5. www.thebalancemoney.com › what-are-interest-rates-and-how-doInterest Rates and How They Work - The Balance

    Jan 29, 2022 · Interest Rates and How They Work. What Is an Interest Rate? The interest rate is the percent of principal charged by the lender for the use of its money. It impacts the economy by controlling the money supply.

  6. en.wikipedia.org › wiki › Interest_rateInterest rate - Wikipedia

    An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum ). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed.

  7. www.investopedia.com › terms › iInterest: Definition and Types of Fees For Borrowing Money -...

    Aug 29, 2023 · Interest is the monetary charge for borrowing money—generally expressed as a percentage, such as an annual percentage rate (APR). Interest may be earned by lenders for the use of...

  8. money.usnews.com › investing › termInterest Rate Definition | Investing Dictionary | U.S. News

    Dec 11, 2023 · Interest rates are a measure of the cost of a loan to a borrower. Typically expressed as a percentage, an interest rate is applied to the outstanding balance of a loan at...