Deposit rate definition
The deposit rate is the interest rate paid by financial institutions on cash deposits such as checking, savings, and Money Market accounts in exchange for the institutions use of that cash while on deposit.
What is the deposit interest rate?
Deposit interest rates can be fixed for a pre-determined amount of time or change depending on the amount of money in the account. Regardless, interest rates on these deposits are typically low, but they are considered a safe place to preserve capital while making a small but steady return.