discount rate vs. interest rate
noun
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the rate of interest charged in discounting commercial paper.
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the interest rate charged by Federal Reserve Banks on loans to their member banks, usually against government securities as collateral.
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the rediscount rate.
noun
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Business. the amount that a lender charges a borrower for taking out a loan, for maintaining a balance on debt, etc.: typically expressed as an annual percentage of the loan balance.
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Banking. the amount earned on a savings, checking, or money market account, or on an investment, such as a certificate of deposit or bond: typically expressed as an annual percentage of the account balance or investment sum.
