Keywords: 利率, lìlǜ, interest rate in Chinese, Chinese bank interest rate, China loan rate, 贷款利率, 存款利率, PBoC interest rate, learn Chinese finance terms, HSK 5 vocabulary
Summary: Learn the essential Chinese financial term 利率 (lìlǜ), which means interest rate. This page breaks down the characters, explains its crucial role in the Chinese economy, from personal savings and mortgages to central bank policy, and provides over 10 practical example sentences. Understand how to use 利率 (lìlǜ) correctly and avoid common mistakes, such as confusing it with 利息 (lìxī - interest amount).
Core Meaning
Pinyin (with tone marks): lìlǜ
Part of Speech: Noun
HSK Level: HSK 5
Concise Definition: The rate, expressed as a percentage, at which interest is paid or charged.
In a Nutshell:利率 (lìlǜ) is the price of money. If you borrow money (like a loan), it's the percentage you have to pay on top of the original amount. If you save money (in a bank), it's the percentage the bank pays you as a reward. Think of it as “rent” for using money—either you're paying it or you're earning it.
Character Breakdown
利 (lì): This character means “profit,” “benefit,” or “advantage.” It's composed of 禾 (hé), meaning “grain,” and 刀 (dāo), a “knife” or sickle. The image is of harvesting grain with a tool, representing a gain or profit.
率 (lǜ): This character means “rate,” “ratio,” or “proportion.” It sets a standard or a measure for something.
When combined, 利率 (lìlǜ) literally translates to “profit rate” or “benefit rate.” This is a very direct and logical construction, referring to the rate at which you gain a monetary benefit (interest) or pay a cost.
Cultural Context and Significance
Central Bank Control: In China, interest rates are a key tool for economic management by the central government and the People's Bank of China (中国人民银行 - Zhōngguó Rénmín Yínháng). Unlike the US Federal Reserve, which influences rates in a market-based system, the PBoC often sets benchmark rates more directly, such as the Loan Prime Rate (LPR, 贷款市场报价利率). Discussions about “cutting rates” (降息 jiàngxī) or “hiking rates” (加息 jiāxī) are common in news reports about managing economic growth.
High Savings Culture: China is known for its high national savings rate. Culturally, there's a strong emphasis on thrift, planning for the future, and providing for family (e.g., children's education, retirement). Therefore, the 利率 (lìlǜ) on savings accounts (`存款 cúnkuǎn`) is a matter of practical concern for almost every household. A small change in the deposit interest rate can significantly impact family savings and financial planning. This makes 利率 (lìlǜ) a more common topic in everyday conversation than it might be in some Western countries where consumer debt is more normalized.
Practical Usage in Modern China
Personal Finance: When talking about mortgages (`房贷 fángdài`), car loans (`车贷 chēdài`), or savings accounts, 利率 (lìlǜ) is the core term used. People will often compare the 利率 offered by different banks.
Business and Investment: In a business context, the 利率 on a corporate loan can determine the feasibility of a new project. For investors, changes in the central bank's benchmark 利率 can signal shifts in the stock market and the value of investment products.
News and Media: Financial news is filled with this term. You will hear it constantly in discussions about economic policy, inflation control, and efforts to stimulate or cool down the economy. The connotation is neutral; it's a technical term. The context determines if a high or low rate is good or bad.
Example Sentences
Example 1:
目前银行的存款利率是多少？
Pinyin: Mùqián yínháng de cúnkuǎn lìlǜ shì duōshǎo?
English: What is the current bank interest rate for savings deposits?
Analysis: A very common and practical question you might ask at a bank. `目前 (mùqián)` means “at present” or “currently.”
Example 2:
这家银行的贷款利率太高了，我们换一家吧。
Pinyin: Zhè jiā yínháng de dàikuǎn lìlǜ tài gāo le, wǒmen huàn yī jiā ba.
English: This bank's loan interest rate is too high, let's switch to another one.
Analysis: Shows how 利率 is used to make financial decisions. `太高了 (tài gāo le)` means “too high.”
English: We need to calculate the total interest for this five-year loan; the interest rate is four percent.
Analysis: This sentence clearly shows the difference between `利息 (lìxī)` - interest amount, and 利率 (lìlǜ) - interest rate. `百分之四 (bǎi fēn zhī sì)` is how you say “4 percent.”
Example 7:
不同的理财产品有不同的预期年化利率。
Pinyin: Bùtóng de lǐcái chǎnpǐn yǒu bùtóng de yùqī niánhuà lìlǜ.
English: Different wealth management products have different expected annualized interest rates.
Analysis: A sophisticated sentence related to investing. `理财产品 (lǐcái chǎnpǐn)` are “wealth management products,” very popular in China.
English: Before signing the contract, you must carefully read the clauses regarding the interest rate.
Analysis: Practical advice. `条款 (tiáokuǎn)` are the “clauses” or “terms” in a contract.
Nuances and Common Mistakes
利率 (lìlǜ) vs. 利息 (lìxī): This is the most critical distinction for learners.
利率 (lìlǜ) is the rate (the percentage, %).
利息 (lìxī) is the interest (the actual amount of money, e.g., $100 or 100元).
Incorrect: 我的存款利率是500元。(My savings interest rate is 500 RMB.) → This is wrong because a rate is a percentage, not a monetary amount.
Correct: 我的存款利息是500元。(My savings interest is 500 RMB.)
Correct: 我的存款利率是2%。(My savings interest rate is 2%.)
False Friend: “Interest” (the feeling)
The word 利率 (lìlǜ) only ever refers to financial interest. It has nothing to do with the feeling of being interested in something. For that, you must use the word 兴趣 (xìngqù).
Incorrect: 我对历史有很高的利率。(I have a high interest rate in history.) → This sounds absurd in Chinese.
Correct: 我对历史有很高的兴趣。(I have a great interest in history.)
Related Terms and Concepts
利息 (lìxī) - The actual amount of money earned or paid in interest. The result of applying the `利率` to a principal amount.
贷款 (dàikuǎn) - A loan. The `利率` is the cost associated with taking out a loan.
存款 (cúnkuǎn) - A savings deposit. You earn `利息` on your deposit based on the bank's `利率`.
降息 (jiàngxī) - To cut or lower interest rates. An important verb related to central bank actions.
加息 (jiāxī) - To raise or hike interest rates. The opposite of `降息`.
年利率 (nián lìlǜ) - Annual Percentage Rate (APR). Specifies the rate for a full year.
固定利率 (gùdìng lìlǜ) - Fixed interest rate. A rate that does not change over the life of the loan.
浮动利率 (fúdòng lìlǜ) - Floating/variable interest rate. A rate that can change over time.
中国人民银行 (zhōngguó rénmín yínháng) - The People's Bank of China (PBoC), the central bank responsible for setting monetary policy and key `利率` in China.
高利贷 (gāolìdài) - Usury; a loan with an extremely high, often illegal, interest rate. Literally “high-interest loan.”