indenture (third-person singular simple present indentures, present participle indenturing, simple past and past participle indentured) To bind a person under such a contract. To indent; to make hollows, notches, or wrinkles in; to furrow. Though age may creep on, and indenture the brow. Derived terms . indenturedness; indentured servant; indentureship
The charge for the use of borrowed money. interest income. The income a person receives from certain bank accounts or from lending money to someone else. taxable interest income. Interest income that is subject to income tax. All interest income is taxable unless specifically excluded.
DEFINITION of 'Interest Deduction'. A deduction for taxpayers who pay certain types of interest. Interest deductions reduce the amount of income subject to tax. The two main types of interest deductions are for home mortgage and home equity loan interest, and margin account interest. These deductions are allowed primarily to encourage home ownership and investment activity. Other interest deductions can come from the interest paid on student loans.