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.