An interest rate tells you how high the cost of borrowing is, or high the rewards are for saving.
So, if you’re a borrower, the interest rate is the amount you are charged for borrowing money, shown as a percentage of the total amount of the loan. The higher the percentage, the more you have to pay back, for a loan of a given size.
If you’re a saver, the savings rate tells you how much money will be paid into your account, as a percentage of your savings. The higher the savings rate, the more will be paid into your account for a given sized deposit.
Even a small change in interest rates can have a big impact. It’s important to keep an eye on whether they rise, fall or stay the same.