interest rates

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Interest rates are rates at which interest is paid on borrowed money.

The customer of a bank, for example, can be a borrower and the bank would be the lender, but it could go the other way such as the case with a savings account. With a savings account, the bank pays interest to the customer at a specified rate.

Interest rates are normally expressed as a percentage rate over the period of one year.

Lenders sometimes charge ridiculously high interest rates to desperate borrowers. In some states in the U.S. the government has intervened and put caps on interest rates when borrowing from lenders who offer products/services such as payday loans or instant cash advances, among others.

You'll find bloggers talking about interest rates at sites like CreditCards.com and DepositAccounts.com.

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