Source : Webster's Revised Unabridged Dictionary (1913)

Bank discount \Bank discount\
   A sum equal to the interest at a given rate on the principal
   (face) of a bill or note from the time of discounting until
   it becomes due.

Discount \Dis"count`\, n. [Cf. F. d['e]compte. See {Discount},
   v. t.]
   1. A counting off or deduction made from a gross sum on any
      account whatever; an allowance upon an account, debt,
      demand, price asked, and the like; something taken or
      deducted.

   2. A deduction made for interest, in advancing money upon, or
      purchasing, a bill or note not due; payment in advance of
      interest upon money.

   3. The rate of interest charged in discounting.

   {At a discount}, below par, or below the nominal value;
      hence, colloquially, out of favor; poorly esteemed;
      depreciated.

   {Bank discount}, a sum equal to the interest at a given rate
      on the principal (face) of a bill or note from the time of
      discounting until it become due.

   {Discount broker}, one who makes a business of discounting
      commercial paper; a bill broker.

   {Discount day}, a particular day of the week when a bank
      discounts bills.

   {True discount}, the interest which, added to a principal,
      will equal the face of a note when it becomes due. The
      principal yielding this interest is the present value of
      the note.

Source : WordNet®

bank discount
     n : interest on an annual basis deducted in advance on a loan
         [syn: {discount rate}, {discount}]