With respect to a loan or loan type of investment (mortgage, bond, savings account, etc.), the percentage of principal charged to a borrower by a lender for use of the latter's money, usually expressed in terms of an annual rate unless otherwise stated.

the percentage of a sum of money charged for its use

The rate of interest can be thought of as the price of money. It is the extra proportion that has to be paid when borrowing money or the extra that a saver receives when putting their money aside for the future (unless they keep it under the mattress). The level of the rate of interest is determined by the Monetary Policy Committee of the Bank of England that meets each month.

Payment for the use of borrowed money, the rate charge varying with the degree of risk run by the tender. Interest rates in large British banks are fixed by reference to a Base Rate` (see definition) which varies as the bank thinks best. See also 'Finance House Base Rate (FHBR)'.

The rate, as a proportion of the principal, at which interest is computed.

The percent charged or paid for the use of money. Example:$1,000 was borrowed at an interest rate of 8.5% per year for a period of 18 months.The rate of interest is 8.5%.

Fixed: Interest rate remains the same for the length of the loan. Variable: Interest rate depends upon an index and increases or decreases (for example, the prime rate or the Treasury Bill index).

Same as interest rate.