discount rate

noun

1

: the interest on an annual basis deducted in advance on a loan

2

: the charge levied by a central bank for advances and rediscounts

Examples of discount rate in a Sentence

Recent Examples on the Web

Even if participants pay for their own tickets, the Likud argues priority flight access and group discount rates are prohibited benefits that amount to election bribery under Israeli law. — Tal Shalev, CNN Money, 19 Sep. 2026

In 2020, the Indian government cut the merchant discount rate, the fee incurred by merchants for accepting payments via UPI, to zero to promote digital transactions in the country. — Priyanka Salve, CNBC, 17 Sep. 2026

The actual discount rate was not specified by Towson University officials. — Michelle Richardson, CBS News, 9 Sep. 2026

Rising earnings expectations can offset the higher discount rates demanded by higher yields. — Bill Stone, Forbes.com, 22 Aug. 2026

Word History

First Known Use

1827, in the meaning defined at sense 1

Rhymes for discount rate

• abdicate
• abrogate
• acetate
• activate
• actuate
• aggravate
• agitate
• alginate
• alienate
• allocate
• amputate
• angulate

Legal Definition

discount rate

noun

1

: the interest on an annual basis deducted in advance on a loan

2

: the interest levied by the Federal Reserve for advances and rediscounts