Finance & Banking

Interest rate

ˈɪntrəst reɪt

noun

What does Interest rate mean?

The cost of borrowing or reward for saving.

Example sentence

"Mortgage interest rates affect home affordability."

American usage tip

The Fed's decisions move all rates.

Related Finance & Banking words

Index fund
A fund tracking a whole market index.
IRA
Individual Retirement Account.
Credit history
Your record of borrowing and repaying.
Annual fee
The yearly cost of holding a credit card.
Diversify
To spread investments across different assets.
Refund
Money returned when you overpaid taxes.
Paycheck
Your salary payment.
Net worth
Total assets minus total debts.

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