Bank discount

Bank discount
Discount Dis"count`, n. [Cf. F. d['e]compte. See {Discount}, v. t.] 1. A counting off or deduction made from a gross sum on any account whatever; an allowance upon an account, debt, demand, price asked, and the like; something taken or deducted. [1913 Webster]

2. A deduction made for interest, in advancing money upon, or purchasing, a bill or note not due; payment in advance of interest upon money. [1913 Webster]

3. The rate of interest charged in discounting. [1913 Webster]

{At a discount}, below par, or below the nominal value; hence, colloquially, out of favor; poorly esteemed; depreciated.

{Bank discount}, a sum equal to the interest at a given rate on the principal (face) of a bill or note from the time of discounting until it become due.

{Discount broker}, one who makes a business of discounting commercial paper; a bill broker.

{Discount day}, a particular day of the week when a bank discounts bills.

{True discount}, the interest which, added to a principal, will equal the face of a note when it becomes due. The principal yielding this interest is the present value of the note. [1913 Webster]


The Collaborative International Dictionary of English. 2000.

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Look at other dictionaries:

  • Bank discount — A sum equal to the interest at a given rate on the principal (face) of a bill or note from the time of discounting until it becomes due. [Webster 1913 Suppl.] …   The Collaborative International Dictionary of English

  • bank discount — ➔ discount1 …   Financial and business terms

  • bank discount — n: the interest that is discounted in advance on a note and computed on the face value of the note Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • bank discount — n. interest deducted in a lump sum by a bank from a loan when the loan is made: it is computed from the date of the loan to the date of the final payment on the basis of the original amount of the loan …   English World dictionary

  • Bank Discount Tower — Localisation Coordonnées …   Wikipédia en Français

  • Bank Discount Tower — General information Status Complete Type Offices …   Wikipedia

  • Bank Discount Rate — The interest rate for short term money market instruments like commercial paper and Treasury bills. The bank discount rate is based on the instrument s par value and the amount of the discount. The bank discount rate is the required rate of… …   Investment dictionary

  • bank discount — noun interest on an annual basis deducted in advance on a loan • Syn: ↑discount rate, ↑discount • Hypernyms: ↑interest rate, ↑rate of interest • Hyponyms: ↑bank rate …   Useful english dictionary

  • Bank Discount Basis — A quoting convention used by financial institutions when quoting prices for fixed income securities sold at a discount, particularly U.S. Government issues. The quote is presented as a percentage of face value, and is determined by discounting… …   Investment dictionary

  • bank discount rate — /bæŋk dɪskaυnt reɪt/ noun a rate charged by a bank for a loan where the interest charges are deducted when the loan is made …   Dictionary of banking and finance

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