interest rate

USAGE SUMMARY

"interest rate" is a correct and usable phrase in written English.
For example, you could say: "The bank offered a competitive interest rate on the loan."

✓ Grammatically correct

News & Media

Wiki

Academia

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

No interest rate rises?

The New York Times

It wasn't interest rate policy.

The New York Times

Interest rate" 6% fixed.

The New York Times

D. higher interest rate.

The New York Times

Riskless interest rate.

Yale University

The lender gets an interest rate.

The New York Times

Thus, the legal interest rate was lowered.

Encyclopedia Britannica

Interest rate risk also looms large.

The New York Times

Asia has already seen interest rate rises.

The New York Times

What is the current interest rate?

The New York Times

What interest rate did you qualify for?

The New York Times

Expert writing Tips

Best practice

When discussing financial products, specify whether you are referring to the annual percentage rate (APR) or the nominal "interest rate" as they represent different calculations of borrowing costs.

Common error

Avoid using the terms "interest rate" and APR interchangeably. APR includes fees and other costs, providing a more accurate picture of the total cost of borrowing, while the nominal rate only represents the stated interest percentage.

Linguistic Context

The phrase "interest rate" functions primarily as a noun phrase, typically serving as a subject or object within a sentence. It describes the percentage charged for borrowing money. As Ludwig AI confirms, it is a correct and usable phrase in written English.

Expression frequency: Very common

Frequent in

News & Media

42%

Wiki

36%

Formal & Business

10%

Less common in

Academia

7%

Encyclopedias

3%

Science

2%

Ludwig's WRAP-UP

In summary, "interest rate" is a noun phrase denoting the percentage of an amount charged for its use. It is a grammatically correct and very common phrase, as validated by Ludwig AI. The phrase is employed across diverse contexts, including news, wiki articles, and business communications. While it maintains a neutral register, it assumes a professional tone in business settings. When using the term, it's crucial to distinguish it from APR to prevent confusion, as highlighted in the writing guidance. Alternative phrases include "rate of interest", "borrowing rate" and "lending rate".

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

rate of interest

Reverses the order of the words while maintaining the same meaning.

borrowing rate

Focuses on the perspective of the borrower and the cost they incur.

lending rate

Highlights the lender's perspective and the return they expect.

finance charge

Emphasizes the cost associated with financing.

cost of borrowing

Highlights the expense incurred when obtaining funds.

annual percentage rate

Refers to the yearly cost of funds over the term of a loan.

yield rate

Highlights the earnings from an investment over a period of time.

discount rate

Emphasizes the rate used to discount future cash flows.

coupon rate

Implies interest rate on a bond.

nominal interest rate

Highlights that the rate doesn't account for the effects of inflation.

FAQs

How is "interest rate" used in a sentence?

You can use "interest rate" in sentences like: "The bank offers a competitive "interest rate" on their loans" or "Changes in the "interest rate" can impact the housing market".

What are some alternatives to "interest rate"?

Alternatives include "rate of interest", "borrowing rate", or "lending rate", depending on the context.

What factors influence the "interest rate"?

Several factors impact "interest rates", including economic conditions, inflation, and central bank policies.

What's the difference between "interest rate" and APR?

"Interest rate" is the stated cost of borrowing money, while APR (Annual Percentage Rate) includes additional fees and charges, providing a more comprehensive measure of the cost of a loan.