Deposit Interest Rate

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DEFINITION of 'Deposit Interest Rate'

The interest rate paid by financial institutions to deposit account holders. Deposit accounts include certificates of deposit, savings accounts and self-directed deposit retirement accounts.

INVESTOPEDIA EXPLAINS 'Deposit Interest Rate'

Deposit accounts are attractive places to park cash for investors who want a safe vehicle for maintaining their principle, earning a small amount of fixed interest and taking advantage of insurance such as FDIC and NCUA insurance.

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