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.

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