Discount vs. Premium — What's the Difference?

To sell or offer for sale at a reduced price

An amount to be paid for a contract of insurance.

To reduce in quantity or value

A sum added to an ordinary price or charge

To deduct or subtract from a cost or price

Something given as a reward, prize, or incentive

To determine the present value of (a future payment or series of payments).

An amount paid or required, often as an installment payment, for an insurance policy.

To price (a bond or other debt security) at a reduction to its face value, especially in place of a coupon.

An amount paid to obtain a loan.

To disregard or doubt (something) as being exaggerated or untrustworthy

An interest payment, usually on a regular basis, on a loan.

To underestimate the significance or effectiveness of; minimize

A sum of money or bonus paid in addition to a regular price, salary, or other amount

To anticipate and make allowance for; reckon with in advance.

The amount at which something, such as a security or a currency, is valued above its initial or nominal price.

A reduction from the full or standard amount of a price or value.

The amount at which a securities option is bought or sold.

The amount by which the face value of a bond or other debt security exceeds its market price.

Something offered free or at a reduced price as an inducement to buy something else

Offering products or services for sale at low or reduced prices

A prize or award.

Sold or offered for sale at a low or reduced price

An unusual or high value

Reduced in quantity or value

(Archaic) Payment for training in a trade or profession.

Priced below face value, especially in place of a coupon

Of superior quality or value

To deduct from an account, debt, charge, and the like.

Superior in quality; higher in price or value.

To lend money upon, deducting the discount or allowance for interest

(automotive) High-end; belonging to the market segment between mid-market and luxury.

To take into consideration beforehand; to anticipate and form conclusions concerning (an event).

A prize or award.

To leave out of account or regard as unimportant.

Something offered at a reduced price as an inducement to buy something else.

To lend, or make a practice of lending, money, abating the discount

A bonus paid in addition to normal payments.

To believe, or act as though one believes, that one's own feelings are more important than the reality of a situation.

(insurance) The amount to be paid for an insurance policy.

A reduction in price.

An unusually high value.

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

(finance) The amount by which a security's value exceeds its face value.

The rate of interest charged in discounting.

A reward or recompense; a prize to be won by being before another, or others, in a competition; reward or prize to be adjudged; a bounty; as, a premium for good behavior or scholarship, for discoveries, etc.

(figurative) A lack or shortcoming.

Something offered or given for the loan of money; bonus; - sometimes synonymous with interest, but generally signifying a sum in addition to the capital.

The act of one who believes, or act as though they believe, that their own feelings are more important than the reality of a situation.

A sum of money paid to underwriters for insurance, or for undertaking to indemnify for losses of any kind.

Specializing in selling goods at reduced prices.

A sum in advance of, or in addition to, the nominal or par value of anything; as, gold was at a premium; he sold his stock at a premium.

To deduct from an account, debt, charge, and the like; to make an abatement of; as, merchants sometimes discount five or six per cent for prompt payment of bills.

Payment for insurance

To lend money upon, deducting the discount or allowance for interest; as, the banks discount notes and bills of exchange.

A fee charged for exchanging currencies

To take into consideration beforehand; to anticipate and form conclusions concerning (an event).

Payment or reward (especially from a government) for acts such as catching criminals or killing predatory animals or enlisting in the military

To leave out of account; to take no notice of.

Having or reflecting superior quality or value;

To lend, or make a practice of lending, money, abating the discount; as, the discount for sixty or ninety days.

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.

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

The rate of interest charged in discounting.

The act of reducing the selling price of merchandise

Interest on an annual basis deducted in advance on a loan

A refund of some fraction of the amount paid

An amount or percentage deducted

Bar from attention or consideration;

Give a reduction in price on;