DEFINITION of 'Earnings Credit Rate - ECR'

A daily calculation of interest paid on idle funds that reduce bank service charges. A calculated amount is then used to pay for banking fees. Therefore, customers with larger deposits and balances tend to pay lower bank fees for their accounts. The rate paid is often pegged to the U.S. Treasury bill rate.

BREAKING DOWN 'Earnings Credit Rate - ECR'

Banks have great discretion for determining the earnings allowance. While the ECR can offset fees, be sure you are only being charged for services you use.





RELATED TERMS
  1. Fee

    A fee is a fixed price charged for a specific service and is ...
  2. Fee Income

    Revenue taken in by financial institutions from account-related ...
  3. Exchange Fees

    A type of investment fee that some mutual funds charge to shareholders ...
  4. Clearing Fee

    A fee charged by a clearing house for its services. A clearing ...
  5. Bank Rate Monitor Index

    An index of money market interest rates paid on deposits at 1 ...
  6. Finance Charge

    A fee charged for the use of credit or the extension of existing ...
Related Articles
  1. Personal Finance

    Cut Your Bank Fees

    Find out how to get the bank to pay you for using their services, not the other way around.
  2. Personal Finance

    The Ins And Outs Of Bank Fees

    These service charges could nickel and dime you right out of your nest egg.
  3. Personal Finance

    Bank Fees Be Gone

    Not only are bank account interest rates measly, but fees can take a serious bite out your balance. Here's what to do.
  4. Investing

    8 Investing Fees That You Should Never Pay

    In investment management and financial planning there are a plethora of fees that are unnecessary.
  5. Investing

    A Guide To Investor Fees

    Fees are one of the most important determinants of investment performance and something that every investor should know.
  6. Financial Advisor

    Are Fees Eating Up Your Nest Egg?

    You may not be able to avoid all fees associated with retirement planning, but you should know what you’re being charged for. Here's a list of common fees.
  7. Managing Wealth

    How To Cut Your Banking Fees

    Smart consumers can side-step most of the new bank fees by investing some time and effort.
  8. Personal Finance

    The Most Costly Banking Mistakes You Can Make

    With changing and increasing fees, it can be difficult to avoid bank charges, but investing time in finding out what your bank charges, and when, can help you save money.
  9. Personal Finance

    How Much Are You Blowing on Bank Fees?

    The amount Americans pay on bank fees will blow your mind – and your budget.
  10. Tech

    Are Financial Advisor Fees Too High?

    Fees charged by financial advisors run the gamut. Are you getting a fair deal or paying too much?
RELATED FAQS
  1. What are typical trust fund management fees?

    Learn about trust fund management fees, such as the annual management fee, annual expense ratio, brokerage commissions and ... Read Answer >>
  2. How do mutual fund expense ratios affect returns?

    Learn what kinds of mutual fund fees there are, how to find out what fees your funds have and how they impact the future ... Read Answer >>
  3. What US banks offer free checking accounts?

    Quit wasting money on monthly fees associated with your checking account and get a free checking account from reputable national ... Read Answer >>
Trading Center