Prime rate
The prime rate is the base interest rate banks use for many variable-rate loans and credit cards, set 3 percentage points above the top of the Federal Reserve's federal funds target range.
Most credit card APRs are written as "Prime Rate + a margin", so when the Federal Reserve raises or cuts rates, the prime rate follows the next day and card APRs follow from the next billing cycle.
The Federal Reserve publishes the rate most large banks post as the bank prime loan rate; it matches the Wall Street Journal prime rate. See today's rate and its full history on our prime rate page.
Today's prime rate and every change since 1955 →
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Related terms
Sources: FRED: Bank prime loan rate (DPRIME)