What is the banking term for the interest rate paid on money held in a deposit account?

The banking term for the interest rate paid on money held in a deposit account is the deposit interest rate.

A deposit interest rate is the rate a bank pays to attract and retain funds from customers. It may apply to savings accounts, certificates of deposit, fixed-term deposits, or other deposit products. Banks can then use part of their funding for lending and other activities, subject to regulation and risk management.

The advertised rate may be expressed as a simple annual rate or as an annual percentage yield that reflects compounding. Comparing the two requires checking how often interest is credited and whether the quoted figure includes compounding. Account fees can also reduce the customer’s effective return.

This rate is different from the annual percentage rate charged on a loan or credit card. Deposit rates can change over time on variable-rate accounts, while fixed-term products may lock the rate until maturity.