Financial Glossary

Here you’ll find clear and concise explanations of key financial terms and concepts. Our goal is to help you better understand essential topics across the financial world.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y | Z

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

Featured
Withholding
Will

Y

Featured
Yield Curve
Yield

Z

Featured
Zero-Coupon Bond

0-9

August Jepsen August Jepsen

Interest Rate

An interest rate is the percentage charged by a lender to a borrower for the use of money, or the percentage paid by a financial institution to a saver for deposits. It is typically expressed annually and applies to loans, credit accounts, and deposits. Higher rates increase the cost of borrowing, and lower rates make borrowing less expensive. For savers, a higher interest rate provides more earnings on deposits. Interest rates play a crucial role in economic activity and financial decisions.​

Read More