GLOSSARY

Debit interest rate

Debit interest rate definition

A debit interest rate, also known as a debit card interest rate, is the interest charged when a bank account linked to a debit card goes into overdraft. This rate applies only when spending exceeds the available balance, effectively resulting in a short-term loan from the bank.

Since debit cards typically draw directly from the account holder’s own funds, interest is not charged unless an overdraft occurs. The application and rate of debit interest depend on the policies of the financial institution. This contrasts with credit card interest, which is routinely applied to borrowed amounts.

amnis business debit card – No interest, just simplicity

amnis multi-currency debit cards do not accrue interest on debit transactions because they draw funds directly from the linked account. Unlike credit cards, there’s no borrowing or overdraft involved, so no interest is charged on spending.

amnis offers a multi-currency debit card with competitive foreign exchange rates. Cashback is available on positive balances through their separate EARN program, making it a smart, interest-free way to manage money across currencies.

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Account balance

An account balance indicates the present value of a financial account, whether it is a checking, savings, investment, or loan account. It shows the amount of money available or the outstanding amount owed, depending on the account type. The balance is determined by subtracting withdrawals and debits from deposits and credits.

Business account

A business account is a specialized bank account designed to manage corporate funds and business-related income, used exclusively for handling transactions that support the company’s financial operations. This type of account helps maintain clear financial separation from personal funds, improving transparency in tracking business income and expenses. In some cases, it is legally required for a business to hold a separate corporate account.

Cash management

Cash management refers to the strategic process of all activities designed to manage a company’s liquidity, ensuring that cash is readily available to meet obligations and invest effectively.

Interest rate

An interest rate is the cost of borrowing or the reward for saving, expressed as a percentage of the principal amount in an account or loan, reflecting the time value of money and compensation for risk. It influences economic activity by guiding consumers, investors, and businesses in decisions related to spending, saving, and investing.

Interest rate risk

Interest rate risk refers to potential financial losses that may arise from fluctuations in market interest rates. Rising or falling rates affect borrowing costs, the value of fixed-income investments, and liquidity planning. For internationally active companies, this can also impact financing and the return on liquid assets. Effective treasury strategies, such as hedging, help reduce this risk.

Minimum balance

A minimum balance is the lowest amount of money that must be maintained in a bank account to keep it active or to avoid fees. Banks may require a minimum balance for business or personal accounts as a condition for waiving maintenance fees, earning interest, or accessing certain account features. Falling below the required threshold can result in penalties or loss of benefits.

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About amnis

amnis offers a comprehensive platform for international banking, offering a range of tools in one place. Transfer money abroad, exchange currencies 24/7 and collect international money transfer with your own IBAN accounts supporting 20+ currencies. Founded in 2014 in Zurich, amnis is a regulated payment institution under the supervision of the Banking Supervision Section in Liechtenstein (FMA) within the EEA.

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