Highinterest

Highinterest is a term used to describe financial products, accounts, or circumstances in which the interest rate charged or paid is higher than a benchmark or average. The term is commonly written with a hyphen as high-interest, but in some contexts it appears as a single word, highinterest, particularly in branding, domain names, or informal usage. It is not a formal category with a universal definition, but a descriptive label applied across different financial contexts.

In consumer lending, high-interest products charge higher rates to borrowers based on risk, loan type, or term. Examples include credit cards with elevated annual percentage rates (APRs), payday loans, and certain subprime personal loans. The total cost of borrowing is influenced by APR, fees, penalties, and the length of the loan. High-interest loans can lead to rapid debt growth if repayments are missed or if rates reset frequently.

In investments and savings, high-interest can refer to instruments offering greater current income or yields. High-yield savings accounts and some money market funds provide higher apparent returns, often with requirements such as higher minimum balances or restricted access. High-interest bonds, commonly called high-yield or junk bonds, offer higher potential returns but come with greater credit risk and price volatility.

Consumer guidance emphasizes comparing APRs and all fees, understanding compounding, and reading terms before agreement. Regulators in many jurisdictions require clear disclosure of costs and protections against predatory lending practices, while investors are advised to assess risk tolerance and the sustainability of yields.