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.

Answer #1

Here’s how the prome rate works: http://ezinearticles.com/?How-The-U.S.-Prime-Rate-Works&id=520839

Merry Christmas !!

Answer #2

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

More Like This
Ask an advisor one-on-one!

Latest Ottawa Mortgage Rates

Finance, Real Estate, Mortgage Services

Gold Rate Today

Finance, Investment, Commodities

Prime Credit Advisors

Credit Repair Services, Financial Services, Consulting Services

Competitive Mortgage Rates in...

Financial Services, Real Estate, Mortgage Brokerage

Prime Accounting Service

Accounting, Tax Services, Financial Consulting