Earnings Credit Rate - ECR

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. Earnings Allowance

    Calculation on the net funds available in a checking account ...
  2. Euromoney Country Risk

    An evaluation of investment risk based on the political and economic ...
  3. Service Charge

    A type of fee charged to cover services related to the primary ...
  4. Fee Income

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

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

    A fee charged by a clearing house for its services. A clearing ...
Related Articles
  1. Options & Futures

    The Ins And Outs Of Bank Fees

    These service charges could nickel and dime you right out of your nest egg.
  2. Savings

    Try These Ways to Reduce Your Bank Fees

    The tables have turned on consumers: Not only are bank account interest rates measly, but fees can take a serious bite out your balance. Here's what to do.
  3. Personal Finance

    How To Cut Your Banking Fees

    Smart consumers can side-step most of the new bank fees by investing some time and effort.
  4. Credit & Loans

    5 Bank Fees You May Not Know About

    Banking regulations have recently changed and fees are following suit.
  5. Investing Basics

    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.
  6. Retirement

    Are Fees Depleting Your Retirement Savings?  

    Each retirement account will have a fee associated with it. The key is to lower these fees as much as possible to maximize your return.
  7. Personal Finance

    Are Financial Advisor Fees Too High?

    Fees charged by financial advisors run the gamut. Are you getting a fair deal or paying too much?
  8. Investing Basics

    How To Optimize Your Portfolio and Reduce Fees

    Investment fees aren't avoidable altogether, but there are strategies investors can employ to keep those fees at bay and reduce the impact on returns.
  9. Investing Basics

    How a 1% Annual Fee Can Ruin Your Nest Egg

    What kind of impact does an annual 1% fee have on your portfolio? The answer may surprise you.
  10. Budgeting

    Everyday Fees And How To Avoid Them

    Keep an eye out for these charges, and you'll save a bundle.
RELATED FAQS
  1. How do commercial banks make money?

    Learn the different ways commercial banks make money, including interest from loan products and banking fees charged to customers. Read Answer >>
  2. 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 >>
  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 >>
  4. 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 >>
  5. What are the best ways to lower my investing fees?

    Lower your investing fees by buying index funds or ETFs, choosing the right mutual fund share class, evaluating breakpoints ... Read Answer >>
  6. How do interest rate changes affect the profitability of the banking sector?

    Discover the impact of interest rates on the profitability of the banking sector. When rates rise, profits increase for the ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center