interest rate
nounUK /ˈɪn.trəst reɪt/
US /ˈɪn.trəst reɪt/
The extra money you pay when you borrow money, or the extra money you get when you save it.
The bank raised its interest rate, so my savings grew a little faster.
OTHER MEANINGS
2. The percentage a bank charges on money it lends.
The interest rate on the car loan was five percent.
3. The percentage a bank pays you for keeping money in an account.
A higher interest rate means your savings earn more.
4. The cost of borrowing money set by a central bank.
When the central bank cuts the interest rate, loans often get cheaper.