Jul 31, 2019 3:15 PM EDT
Whenever you have a loan or bank card at a commercial bank like Bank of America (BAC) – Get Report or Citibank (C) – Get Report, the lowest rate of interest you may be charged is named the “prime rate. ” even though the rate that is prime be one thing you vaguely remember from the past economics program, it could influence your wallet today in genuinely genuine means.
And even though you probably have actually heard for the federal funds price, that will be the price of which the Federal Reserve lends funds to commercial banking institutions, the rate that is prime really very well be considered the creme de la creme of interest levels for non-bank clients. But, precisely what is the rate that is prime and just how has it changed through the years? On top of that, what’s the 2019 prime price?