Definition of bank discount in English:

bank discount


  • Interest computed on the face value of a loan and deducted in advance from the loan by the lending bank.

    ‘Since we computed the bank discount rate from the dollar discount and the investment, all we have to do is reverse the process.’
    • ‘For example, the bank discount method is used for Treasury bills sold by the U.S. government and commercial paper issued by businesses.’
    • ‘If a bank customer obtains such an insurance quote, the bank will provide bank discounts on bank service fees for bank products to such customer.’
    • ‘The bank discount rate might also be tied to the amount of monthly charges.’
    • ‘The bank discount rate normalizes by the face value of the security (for example, U. S. Treasury Bills) and understates the true yield earned by investors.’