prime rate
noun
: 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
Shorter-term rates are more closely pegged to the prime rate, which is typically 3 percentage points above the federal funds rate.
—
Jessica Dickler, CNBC, 26 Jan. 2026
Because most HELOCs have variable rates that are tied to the prime rate, any Fed rate cuts will directly impact rates on HELOCs, too.
—Aly J Yale, CBS News, 26 Jan. 2026
The index: Most HELOC lenders use Wall Street’s prime rate.
—Jeff Lazerson, Oc Register, 11 Dec. 2025
The prime rate — now 7.25% — drops in tandem with a Fed rate cut.
—Susan Tompor, Freep.com, 23 Oct. 2025
See All Example Sentences for prime rate
Examples are automatically compiled from online sources to
show current usage.
Read More
Opinions expressed in the examples do not represent those of Merriam-Webster or its editors.
Send us feedback.
Jessica Dickler, CNBC, 26 Jan. 2026
Because most HELOCs have variable rates that are tied to the prime rate, any Fed rate cuts will directly impact rates on HELOCs, too.
—Aly J Yale, CBS News, 26 Jan. 2026
The index: Most HELOC lenders use Wall Street’s prime rate.
—Jeff Lazerson, Oc Register, 11 Dec. 2025
The prime rate — now 7.25% — drops in tandem with a Fed rate cut.
—Susan Tompor, Freep.com, 23 Oct. 2025
See All Example Sentences for prime rate
Cite this Entry
“Prime rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/prime%20rate. Accessed 1 Feb. 2026.
Copy CitationLove words? Need even more definitions?
Merriam-Webster unabridged
