Definition of bank discount in US English:

bank discount


  • Interest computed on the face value of a loan and deducted in advance from the loan by the lending bank.

    • ‘The bank discount rate normalizes by the face value of the security (for example, U. S. Treasury Bills) and understates the true yield earned by investors.’
    • ‘For example, the bank discount method is used for Treasury bills sold by the U.S. government and commercial paper issued by businesses.’
    • ‘Since we computed the bank discount rate from the dollar discount and the investment, all we have to do is reverse the process.’
    • ‘If a bank customer obtains such an insurance quote, the bank will provide bank discounts on bank service fees for bank products to such customer.’
    • ‘The bank discount rate might also be tied to the amount of monthly charges.’