How Does the Key Interest Rate Compare to a Prime Rate?

Answer The key interest rate that controls the prime rate is known as the overnight fed funds rate. This key rate is the interest rate that banks lend and borrow money at between each other. On the other ... Read More »

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Is credit card interest tied to the prime interest rate?

According to the Federal Reserve, some variable-rate credit cards base their interest rate on the prime interest rate. However, other rates can also be used, such as the Treasury bill rate.Source:F... Read More »

What is prime interest rate?

The prime interest rate, or prime lending rate, is what the commercial banks use when lending to creditworthy borrowers, usually large corporations. This rate is a setting for home equity lines of ... Read More »

How is the prime interest rate determined?

The prime interest rate, or simply prime rate, is determined by banks, based on their cost to borrow money. Banks borrow money from each other, from Federal Reserve Banks and from depositors.Defini... Read More »

What is the prime mortgage interest rate?

The interest rate on prime mortgages is much lower than the rate on subprime loans. That's because people who qualify for prime mortgages have great credit scores and are less likely to default on ... Read More »