prime rate

noun

Definition of prime rate

: an interest rate formally announced by a bank to be the lowest available at a particular time to its most credit-worthy customers

called also prime interest rate

Examples of prime rate in a Sentence

Recent Examples on the Web New Mexico’s small-business recovery loans are repaid at half the prime rate of interest that commercial banks charge their most creditworthy customers, with zero interest accrued during the first year. From Usa Today Network And Wire Reports, USA TODAY, 7 June 2021 The interest rate on the $22.5 million note was 2.31 percent, below the prime rate of 3.25 percent that commercial banks charged their most creditworthy customers at the time. Patrick Danner, San Antonio Express-News, 9 Apr. 2021 Even states with prejudgment interest, such as Michigan or Wisconsin, provide a more reasonable rate structure by tying the interest rate to market conditions such as the federal prime rate, as opposed to a flat rate. Kevin Bessler, Washington Examiner, 26 Mar. 2021 After 12 months, the 0% interest rate would switch to a variable rate of 13.24% to 19.24% depending on my creditworthiness and the prime rate. Next Avenue, Forbes, 5 Mar. 2021 The move in the loan prime rate -- a market indicator of the price that lenders charge corporates and households for loans -- was limited by the lack of a policy interest-rate cuts since February. Bloomberg.com, 29 Apr. 2020 The prime rate was recently 3.25%, down from 5.5% a year earlier. Dallas News, 19 Apr. 2020 Credit cards Credit card rates are typically tied to the prime rate, which is affected by the Fed's benchmark rate. Jessica Menton, USA TODAY, 4 Mar. 2020 There are, to name the main contenders, the one-year deposit rate (now 1.5%), the seven-day reverse-repurchase rate (known as the DR007, 2.2%), the medium-term lending facility (MLF, 3.15%) and the one-year loan prime rate (LPR, 4.05%). The Economist, 2 Apr. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'prime rate.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of prime rate

1924, in the meaning defined above

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Time Traveler for prime rate

Time Traveler

The first known use of prime rate was in 1924

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Statistics for prime rate

Last Updated

9 Jun 2021

Cite this Entry

“Prime rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/prime%20rate. Accessed 19 Jun. 2021.

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More Definitions for prime rate

prime rate

noun

English Language Learners Definition of prime rate

: the lowest interest rate that banks will give to people who borrow money from them

prime rate

noun

Legal Definition of prime rate

: an interest rate formally announced by a bank to be the lowest available at a particular time to its most creditworthy customers

called also prime, prime interest rate

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