The prime rate shown in Chart I is the interest rate charged by the majority of the nation’s top 25 domestic commercial banks. One interesting feature is that the prevailing prime rate typically is ...

It is currently 0% to .25%. Banks use this rate as a starting point to set the prime rate for consumers. The prime rate is often roughly 3% higher than the federal funds rate (and currently 3.25%).

The current prime rate among major U.S. banks is 4%. The prime rate runs 3 percentage points above the central bank’s federal funds rate, which the Fed just raised to a target range of 0.75% to 1%.

As of January 2025, the prime interest rate is 7.50%. On Dec. 18, 2024, the Federal Open Market Committee (FOMC) voted to lower the target range for the federal funds rate to 4.25%-4.50% (a ...

Prime Rate vs. Discount Rate: An Overview Borrowing costs are determined by a variety of factors, which include interest rates. Two common rates are the discount rate and the prime rate.

The prime rate normally runs 3 percentage points above the central bank’s federal funds rate, which the Fed just raised to a target range of 1.5% to 1.75%.

The current prime rate is 7.75%, up from 7.50% in December. It went into effect Feb. 2, 2023. This is the eighth time that the Federal Reserve has increased the prime rate since it began its most ...

LIBOR rates and the prime rate tend to move in the same direction -- but not always. In late 2008, for example, LIBOR rates rose sharply while the prime rate declined.