finance

What is an interest rate?

 

What is an interest rate?

The Bankrate.com financial term of the day is: "interest rate."

An interest rate is often referred to as the cost of money. When you borrow to buy a home or for other needs, the money you receive by way of the loan comes with an annual charge, or interest rate, which is expressed as a percentage. When you make a deposit with a bank, it pays you an interest rate as a cost of using your money -- to make loans to other customers.

Money isn't free. It usually comes with an annual cost known as an interest rate.

To find the best interest rates, visit the Checking & Savings section at Bankrate.com.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement
advertisement

Blog

Tara Baukus Mello

Are you driving this year’s top utility vehicle?

See why 60 automotive journalists chose Chrysler for this award at the Detroit Auto Show.  ... Read more


Connect with us