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Prime rate
What is a prime rate? Is it high now, I don’t really get what it means only it has to do with interest.
Here’s how the prome rate works: http://ezinearticles.com/?How-The-U.S.-Prime-Rate-Works&id=520839
Merry Christmas !!
Prime Lending Rate, is a term applied in many countries to a reference interest rate used by banks.
In the US, the prime rate runs approximately 300 basis points (or 3 percentage points) above the federal funds rate (currently ranged between 0.25% and 0.50%), the interest rate that banks charge to each other for overnight loans made to fulfill reserve funding requirements.
Currently the Prime Rate is 3.25%. It’s very low.
Hope this answered your question! 8D
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