rate of interest

USAGE SUMMARY

The phrase "rate of interest" is correct and usable in written English.
It can be used in financial contexts to refer to the percentage at which interest is charged or paid on a loan or investment. Example: "The bank offers a competitive rate of interest on savings accounts, making it an attractive option for customers."

✓ Grammatically correct

Formal & Business

News & Media

Academia

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

What determines the rate of interest?

Encyclopedia Britannica

Rate of interest paid to directors, etc.

Cornell University

"One of those key things was the rate of interest.

The Guardian - Business

Is a competitive rate of interest being paid?

The New York Times

One is to increase the top rate of interest.

The Guardian - Opinion

The rate of interest shall be 5percentnt.

Yale University

A low rate of interest leads to concentration on longer, more roundabout processes, and a high rate of interest on shorter, less roundabout processes.

Britannica

The loan would be worth several billion dollars at a very low rate of interest.

The Guardian

How long the surcharge lasts depends upon the rate of interest on the bonds, officials said.

The New York Times

The Barclays cocos would pay a 7% coupon – or rate of interest – annually, not compounded.

The Guardian - Business

Indeed, even the most competitive personal loans won't beat that rate of interest.

The Guardian - Money

Expert writing Tips

Best practice

When writing about financial topics, use "rate of interest" to provide a clear and specific indication of the cost or return associated with a financial product.

Common error

Avoid using "rate of interest" interchangeably with similar terms like "annual percentage rate" (APR) without understanding the nuances. APR includes additional fees, offering a more comprehensive view of borrowing costs.

Linguistic Context

The phrase "rate of interest" functions primarily as a noun phrase. It identifies the percentage charged for the use of money, whether it's a loan or an investment. Ludwig AI examples show its wide use in financial and economic contexts.

Expression frequency: Very common

Frequent in

News & Media

33%

Academia

26%

Formal & Business

16%

Less common in

Encyclopedias

13%

Science

6%

Wiki

3%

Ludwig's WRAP-UP

The phrase "rate of interest" is a common noun phrase used to describe the percentage charged or paid for the use of money. Ludwig AI confirms it is grammatically correct and frequently used across various contexts, especially in news, academia, and formal business settings. While often interchangeable with "interest rate", "rate of interest" might lend a slightly more formal tone. Be mindful of its specific meaning and avoid confusion with broader terms like "annual percentage rate" (APR), which encompasses additional fees. Understanding the nuances of "rate of interest" is crucial for clear and accurate communication in financial discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

interest rate

A more common and concise way to express the same concept.

interest yield

Focuses on the return aspect of interest, rather than the cost.

yield rate

Similar to interest yield, emphasizing the percentage of return.

annual percentage rate

More specific, referring to the yearly cost of borrowing, including fees.

borrowing rate

Highlights the rate at which funds are acquired.

lending rate

The rate at which money is loaned out.

cost of borrowing

Describes the expense incurred when taking a loan.

return on investment

Focuses on the gain from an investment due to interest.

finance charge

Encompasses all costs associated with borrowing, including interest.

discount rate

The interest rate used to discount future cash flows.

FAQs

What is the difference between "rate of interest" and "annual percentage rate"?

While both terms relate to the cost of borrowing, "rate of interest" refers specifically to the percentage charged on the principal amount. "Annual percentage rate" (APR), on the other hand, includes additional fees and costs associated with the loan, providing a more comprehensive picture of the total borrowing expense.

What factors determine the "rate of interest" on a loan?

The "rate of interest" on a loan is influenced by several factors, including the borrower's creditworthiness, the loan amount and term, and prevailing market conditions. Economic indicators and monetary policies set by central banks also play a significant role.

How does a low "rate of interest" affect investment decisions?

A low "rate of interest" can make borrowing more attractive, potentially stimulating investment in capital projects and other ventures. It may also encourage individuals to seek higher-yielding investments, such as stocks or real estate, rather than relying on fixed-income assets.

In what contexts is it best to use "rate of interest" versus "interest rate"?

Both phrases are generally interchangeable. However, "rate of interest" might be preferred in more formal or technical writing contexts, while "interest rate" is more commonly used in general conversation and less formal communications.