Interest rates today Meaning and Definition

Pronunciation

(/ˈɪnˈtɛrst.rɪts.tɔi.dˈeɪ/)

Part of Speech

Noun

Definition

Current rates of interest on loans, savings accounts, or other financial instruments, typically measured as a percentage of the principal amount.

Examples

The bank offered a competitive interest rate on its new savings account.
The low interest rate made it difficult for businesses to borrow money.

Synonyms

Rates
Terms

Antonyms

Rates
Taxes

Additional Information

Interest rates can influence economic growth, consumer spending, and investment decisions. Central banks, such as the Federal Reserve in the United States, play a crucial role in setting interest rates to control inflation and stabilize the economy. Interest rates also vary depending on factors like the type of loan, credit score, and loan term. It is essential for individuals and businesses to stay informed about interest rates to make wise financial decisions.

Etymology

The term “interest rate” originates from the concept of interest as a payment made on borrowed money, with the rate referring to the percentage of the principal amount.

Usage Notes

Interest rates can be used in various contexts, such as finance, economics, banking, and even personal financial planning. When discussing interest rates, it is essential to specify the type of loan or investment, as well as the time frame, to provide accurate information.

Cultural References

Interest rates have been mentioned in various films, such as the movie “The Producers” (2005), where the main character says, “We’re talking interest rates, not interest!”

Idiomatic Expressions or Phrases

“Interest rates are falling” is a common phrase used to describe a decrease in interest rates.

Related Words or Phrases

Yield
Returns

Collocations

Interest rates and loan
Interest rates and savings

Frequency of Use

Interest rates are frequently discussed in financial news and media, with new data and updates being released regularly.

Common Misspellings

Interst rates
Intrese rates