discount rate: Meaning and Definition of

dis'count rate"

Pronunciation: [key]
— Finance. Finance.
  1. the rate of interest charged in discounting commercial paper.
  2. the interest rate charged by Federal Reserve Banks on loans to their member banks, usually against government securities as collateral.
  3. the rediscount rate.
Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.