Earnings Credit Rate


Earnings Credit Rate

Also called an ECR. The interest rate a bank pays on customer deposits. Rather than being applied to the deposit directly, ECRs are used to reduce the fees the customers pay for other banking services. For example, if a bank is paying a 0.05% ECR on a $10,000 deposit, the depositor earns a $5 reduction in his/her other fees. An ECR is usually connected to a Treasury bill rate.