Banking
Interest Expense on Customer Deposits
Accruing the monthly cost of interest payable on all deposit products.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Interest Expense (Deposits) | Expense (+) | 45,000.00 | - |
| Accrued Interest Payable (Deposits) | Liability (+) | - | 45,000.00 |
💡 Accountant's Note
This is the primary funding cost for a bank. The spread between interest income on loans and interest expense on deposits is the Net Interest Margin (NIM) — the most important profitability metric in banking.
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