The prime interest rate is the rate charged by commercial financial institutions for short-term loans to corporations or individuals whose credit standing is high enough that little risk to the lender is involved in making the loan This rate fluctuates based on economic conditions and may be different among financial institutions The prime rate serves as a basis for the interest rates charged for other higher-risk loans
The lowest interest rate charged by commercial banks to their most credit-worthy customers; other interest rates, such as personal, automobile, commercial and financing loans are often pegged to the prime
A bank's prime rate is the lowest rate of interest which it charges at a particular time and which is offered only to certain customers. At least one bank cut its prime rate today. The lowest rate of interest on bank loans at a given time and place, offered to preferred borrowers. Also called prime interest rate. the lowest rate of interest at which companies can borrow money from a bank base rate
The interest rate that commercial banks set as their base lending rate This rate is not determined by the financial markets, but is established separately by each bank It is a closely watched indicator of general trends in interest rates
Interest rate banks charge their most credit-worthy customers; a key benchmark since loans to less credit-worthy customers are often tied to the prime rate
The fluctuating interest rate that banks charge to their best business customers Many commercial loans have interest rates that fluctuate based on the prime rate
The interest rate that banks charge to their preferred customers Changes in the prime rate are widely publicized in the news media and are used as the indexes in some adjustable rate mortgages, especially home equity lines of credit Changes in the prime rate do not directly affect other types of mortgages, but the same factors that influence the prime rate also affect the interest rates of mortgage loans
The interest rate that banks charge to their preferred customers Changes in the prime rate influence changes in other rates, including mortgage interest rates
The Prime Rate is the rate banks use in pricing short-term commercial loans to their most creditworthy customers This index is currently used to calculate the interest rate on some private loans The Prime Rate can also be found in the business section of most newspapers, and in the Tuesday edition of the Wall Street Journal
Prime means "best," and this rate is what banks charge their best commercial customers for loans The prime changes often, is reported daily in The Wall Street Journal, and is used as a reference point for many businesses For instance, the prime rate is used by some financial institutions to set the APR for credit cards
The interest rate banks charge their most creditworthy commercial customers Banks use the prime as a base to set rates for credit cards, home-equity loans and other loans, including loans to small and medium-size businesses The rate is determined by general trends in interest rates As rates decline, the prime rate will also move lower However, it doesn't typically move on a day-by-day basis Prime rate changes are usually led by major money center banks Normally, the prime rate will move in steps and then remain constant until a major rate change has been made This usually happens when the Federal Reserve makes major changes in monetary policy BACK TO TOP
The interest rate that banks charge to their best customers for short-term loans Changes in the prime rate can influence changes in other interest rates