Interest Rate

The article may contain affiliate links from one or more partners. Learn how we make money to continue our financial wellness mission.

Interest rate is the percentage rate of interest charged to the borrower or paid to a lender, saver, or investor.

For Loans

The interest rate is the amount paid by a borrower to a lender in exchange for the use of the lender’s money for a certain period of time. Interest is paid on loans or on debt instruments as the percentage charged when you borrow money. See also Annual Percentage Rate (APR).