What is Deposit Rate ?

The deposit rate is the interest rate paid by commercial banks or financial institutions on cash deposits of account holders. Deposit accounts include certificates of deposit (CD), savings accounts, and other investment accounts.

 

For instance, a deposit interest rate will often be paid for cash deposited into savings and Money Market accounts. Savings accounts earn a rather low rate of interest, but cash deposited in certain other account types are also paid a deposit rate by banks and financial institutions. Deposit interest rates can be either fixed for a certain period of time with a minimum amount of money on deposit,