Business and Personal Finance Dictionary

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

• INTEREST
  
  1. A monetary benefit paid by a borrower for the right to use a lender’s or a depositor’s funds. Usually, the interest is paid periodically over the life of the loan, deposit, or security. However, some interest-bearing instruments, such as savings accounts, do not have defined maturities. Under the terms of some instruments, interest is not paid periodically over the life of the instrument but instead is paid solely at the end of the loan/deposit/security term. 2. A right to enjoy some benefits of ownership of property. For example, the rights that a debtor or a court grants to a secured party in the assets owned by the debtor. Or, for example, the rights that a lessee is granted in the lease of property owned by a lessor.
  
  Back