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. Interchange Rate

    A fee charged by banks that covers the cost of handling and credit ...
  4. Idle Funds

    Money that is not invested and, therefore, earning no interest ...
  5. Service Charge

    A type of fee charged to cover services related to the primary ...
  6. Exchange Fees

    A type of investment fee that some mutual funds charge to shareholders ...
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. Investing

    8 Investing Fees That You Should Never Pay

    In investment management and financial planning there are a plethora of fees that are unnecessary.
  4. 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.
  5. Personal Finance

    Find the Best Savings Account Rates

    You know how to spot the highest interest rate, but how do you really get the best deal on savings accounts?
  6. Investing

    What is a Bank?

    A bank is a financial institution licensed to receive deposits or issue new securities to the public.
  7. Retirement

    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.
  8. Personal Finance

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  9. Personal Finance

    Choose To Beat The Bank

    From internet banking to credit unions, it's in your power to cut fees and maximize service.
RELATED FAQS
  1. How does the deposit multiplier affect a bank's profitability?

    Find out how a deposit multiplier affects bank profitability, how it increases the supply of money in the economy and why ... Read Answer >>
  2. How do you calculate payback period using Excel?

    Understand the various fees that can be assessed on a personal or business checking account, and learn methods to avoid being ... Read Answer >>
  3. What is the difference between an investment and a retail bank?

    Learn the primary differences between retail banks and investment banks by examining the business activities, type of clients ... Read Answer >>
  4. 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 >>
Trading Center