www.FedPrimeRate.com: The US Prime Lending Rate Prime Rate Forecast www.FedPrimeRate.com
Prime Rate  |  Current Prime Rate  |  Prime Rate History  |  Prime Rate Forecast  |  SITEMAP
Prime Rate Chart  | Credit Card Search |  Economy  |  Life Insurance  |  LIBOR Rates
MONTHLY Prime Rate History  | United States Prime Rate Flow Chart |   Mortgage Rates

United States Prime Rate

The Current U.S. (Fed) Prime Rate is: 8.50%

June 12, 2024: The FOMC has voted to keep the
target range for the fed funds rate at 5.25% - 5.50%.
Therefore, the United States Prime Rate remains at 8.50%

The next FOMC meeting and decision on short-term
interest rates will be on July 31, 2024.

Prime Rate Definition

The U.S. Prime Rate is a commonly used, short-term interest rate in the banking system of the United States. All types of American lending institutions (traditional banks, credit unions, thrifts, etc.) use the U.S. Prime Rate as an index or foundation rate for pricing various short- and medium-term loan products. The Prime Rate is consistent because banks want to offer businesses and consumers loan products that are both profitable and competitive. A consistent U.S. Prime Rate also makes it easier and more efficient for individuals and businesses to compare similar loan products offered by competing banks.

Each U.S. state does not have its own individual Prime Rate, so the "New York Prime Rate" or the "California Prime Rate" are in fact the same as the United States Prime Rate.

Providers of consumer and commercial loan products often use the U.S. Prime Interest Rate as their base lending rate, then add a margin (profit) based primarily on the amount of risk associated with a loan. Moreover, some financial institutions use Prime as an index for pricing certain time-deposit products like variable-rate Certificates of Deposit.

It's important to note that the Prime Rate is an index, not a law. Consumers and business owners can sometimes find a loan or credit card with an interest rate that is below the current Prime Lending Rate. Lenders will sometimes offer below-Prime-Rate loans to highly qualified customers as a way of generating business. Furthermore, below-Prime-Rate loans are relatively common when the loan product in question is secured, as is the case with mortgages, home equity loans, home equity lines of credit and car loans.

Every U.S. bank sets its own Prime Rate. However, the Prime Rate is invariably tied to America's cardinal, benchmark interest rate: the Federal Funds Target Rate (or Fed Funds Target Rate [FFTR].) The FFTR is set by a committee within the Federal Reserve system called The Federal Open Market Committee (FOMC). The FOMC usually meets every six weeks, and it is at these meetings that the FOMC votes on whether or not to make changes to the FFTR. When the FFTR changes, the United States (Fed) Prime Rate will also change. If the FOMC votes to make no changes to the FFTR, then the U.S. Prime Rate will also remain unchanged.

Since the second quarter of 1994, a rule of thumb for the U.S. Prime Rate has been:

U.S. Prime Rate = (The Fed Funds Target Rate + 3)

The FOMC's primary objectives are to keep inflation under control and maintain steady economic growth with maximum sustainable employment within the United States.

The U.S. Prime Interest Rate is used by many banks to set rates on many consumer loan products, such as student loans, home equity lines of credit, car loans and credit cards. If you read or hear about a change to the U.S. Prime Rate, then any loan product that is tied to the Prime Rate will also change, like variable-rate credit cards or certain adjustable-rate mortgages.

Click here for more information about how the U.S. Prime Rate works.

Click here to view a FlowChart for the U.S. Prime Rate.

Click here to jump to the U.S. Prime Rate FAQ.

The Current Fed Prime Rate is: 8.50%

(the last rate change -- an increase of 25 basis points
[0.25 percentage point] -- occurred on July 26, 2023)


If you have questions or concerns about
any content within this website,
or about the United States Prime Rate,
click here to send us an email.

www.FedPrimeRate.com Is The
"Always Up-To-Date"
Interest Rate Information Website.

  - CLICK HERE to Jump to The Top of This Page -

All written content on this page, unless otherwise noted,
was produced by Steve "AmCy" Brown,
copyright © 2024 FedPrimeRate.comSM

Content on this webpage updated on July 23, 2024.


Prime Rate  |  Current Prime Rate  |  Prime Rate History
MONTHLY Prime Rate History   |  Prime Rate Forecast  |  SITEMAP
Prime Rate Chart | Life Insurance | LIBOR Rates
Fed Funds |   Prime Rate FAQ | International Prime Rates
MONTHLY Prime Rate History   |   Mortgage Rates

Latest Norton Antivirus Protection Renewal Scam In My Email Inbox

My Uncle Got Sucked Into A "Home Depot" Phishing Scam

QUESTIONS & COMMENTS | New York City Rent Is Too High!

United States Prime Rate Flow Chart

Certificates of Deposit | WOLOF



  - CLICK HERE to Jump to The Top of This Page -
copyright © 2024 FedPrimeRate.comSM
Page copy protected against web site content infringement by Copyscape

This website is neither affiliated nor associated with
The United States Federal Reserve in any way.
Information in this website is provided for educational
purposes only. The owners of this website make no
warranties with respect to any and all content contained within this
website. Consult a financial professional before making important
decisions related to any investment or loan product, including,
but not limited to, business loans, personal loans,
education loans, first
or second mortgages, credit cards, car loans or any type of insurance.