carrying charge

n.
The interest charged on the balance owed when paying in installments.

A cost associated with holding a financial instrument or storing a physical commodity over a defined period of time.

Investopedia Says:
Carrying charges include fees such as insurance, storage, and other related costs. These costs are generally incorporated into the price of a futures contract or commodity.

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Commodities: charge for carrying the actual commodity, including interest, storage, and insurance costs.

Margin accounts: fee that a broker charges for carrying securities on credit.

Real estate: carrying cost, primarily interest and taxes, of owning land prior to its development and resale.

Retailing: seller's charge for installment credit, which is either added to the purchase price or to unpaid installments.

Commodities: charge for carrying the actual commodity, including interest, storage, and insurance costs.

Real estate: carrying cost, primarily interest and taxes, of owning land prior to its development and resale.

Retailing: seller's charge for installment credit, which is added either to the purchase price or to unpaid installments.

Securities: fee that a broker charges for carrying securities on credit (margin).

1. Portion of the Finance Charge in bank loans covering the lender's costs in booking the loan and collecting payments plus a portion of bad debt expense.

2. Broker's charge to customers for a Margin account financing securities purchased on credit.

3. Dealer's out-of-pocket expenses, usually bank loans, for holding a cash security or commodity until sold or delivered. Carrying charges can also refer to storage, insurance, and other costs.

Expenses necessary for holding property, such as taxes and interest on idle property or property under construction.
Example: The annual carrying charges on a $100,000 tract of land are: $2,000 for taxes and $12,000 for interest.

1.  Interest charged on the balance owed when paying on an installment plan, as in What is the carrying charge for this credit card? The term denotes the amount charged for carrying the remaining debt. [Late 1800s]
2.  The cost incurred when an asset is unproductive, as when aircraft are grounded during a strike, real estate cannot be developed owing to zoning laws, or similar circumstances. For example, The carrying charge for owning this building may send us into bankruptcy.

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This entry contains information applicable to United States law only.

Payments made to satisfy expenses incurred as a result of ownership of property, such as land taxes and mortgage payments. Disbursements paid to creditors, in addition to interest, for extending credit.

Consumer protection laws require full disclosure of all carrying charges.

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