feeder account, feeder funds

Tianabab

New Member
German - Germany
Hello out there,

can any one explain to me what a "feeder account" is and maybe even provide a german expression for it?

The context in the novel is - stock market trade, a network of accounts in order to make huge amounts of money disappear and reappear elsewhere ...
It's in no dictionary and the links I found via google aren't helpful at all.
Thank you very much!
 
  • Nerino

    Senior Member
    Italian
    I have found this, hope it can be of help:

    Fixed notice regular savings accounts can also be known as High Interest savings accounts. These accounts give you a higher rate of interest in return for leaving your money in for a fixed amount of time (or term). This is usually for at least a year. Some accounts will pay even higher rates of interest if you keep your money in for two or three years.

    When you open a fixed notice regular savings account, you may be asked to open another account at the same time. This is known as a feeder account. You will need to pay money into the feeder account first and then transfer regular amounts into the fixed notice account. You won't get a guaranteed rate of interest on your feeder account so you need to check that the interest rate paid on the fixed notice account is high enough to compensate for your money being kept in the feeder account at a lower rate of interest.
    You can sometimes use your current account as a feeder account if your savings account is with the same bank or building society. If you have to open a separate account, check what interest rate you will get on the money in your feeder account.

    http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/savings_index/ways_to_save_index/bank_and_building_society_savings_accounts.htm

    Bye! :)
     
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