deposit-rate

Vocabulary Word

Definition

Deposit rate is interest that a bank gives you for keeping your money there. It is a way for banks to encourage people to save their money in the bank rather than spend it.

Examples in Different Contexts

In economics, 'deposit-rate' changes can signal shifts in monetary policy or economic conditions. An economist might state, 'Central banks may adjust deposit-rates to influence economic activity, such as encouraging saving or spending.'

Practice Scenarios

Banking

Scenario:

We've recently observed a significant increase in withdrawals. It seems our customers might be looking for better interest rates elsewhere.

Response:

Despite the growing number of alternative financial services, a competitive deposit rate can still draw customers to traditional banking.

Business

Scenario:

It seems that interest rates are on a downtrend. This might discourage clients from saving and make them more likely to spend or invest.

Response:

Anyone who's saving money needs to be mindful of deposit rates. I've found some banks to offer better rates than others.