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

Most credit cards have variable interest rates that track the prime rate banks charge their best customers. — Paul Wiseman, Los Angeles Times, 16 Sep. 2026

As the federal funds rate rises, the prime rate does, as well, and credit card rates follow suit within a few billing cycles. — Jessica Dickler, CNBC, 16 Sep. 2026

And that, in turn, would lead to a drop in the prime rate. — Aly J Yale, CBS News, 19 June 2026

Many variable-rate loans are tied to the prime rate or SOFR (the Secured Overnight Financing Rate, which has replaced LIBOR as the standard benchmark). — Allbusiness, Forbes.com, 18 May 2026

Word History

First Known Use

1924, in the meaning defined above

Rhymes for prime rate

• abdicate
• abrogate
• acetate
• activate
• actuate
• aggravate
• agitate
• alginate
• alienate
• allocate
• amputate
• angulate

Legal Definition

prime rate

noun

: 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