cost of funds

cost of funds definition - business

cost of funds

The interest cost of borrowing money expressed as a percentage. Cost of funds is sometimes calculated as the weighted average interest rate on all outstanding loans. For example, a bank's cost of funds is the weighted interest rate paid on checking accounts, money market accounts, savings accounts, and certificates of deposit.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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