From a consumer's perspective, the interest rate is expressed as annual percentage yield (APY) when the interested is earned, for example, from a savings account or a certificate of deposit. When the interest is paid, for example, for a credit card, a mortgage, or a loan, the interest rate is expressed as annual percentage rate (APR).
For more information, see: Difference Between Interest Rate and APR.
Use interest rate in a sentence
“ You should always shop around and try to find the best possible interest rate that you can find any where. ”
“ With interest rates plummeting into the single digits, Roger felt now was the time to take out a loan and buy that gold VW he'd had his eyes on for 30 years. ”
“ If the interest rate on a mortgage is fixed over the lifetime of the loan, economic conditions won't affect the nominal monthly payments, but the real monthly payments still depend on inflation. ”