Prime interest rate explanation
The prime rate is the interest rate that banks charge borrowers who are the most trustworthy—or “creditworthy”—based on their borrowing history. What is the 30 Oct 2019 Here's how lower interest rates affect credit card, mortgage and savings rates tied to the prime rate, which in turn is affected by the Fed's benchmark rate. A percentage-point cut in the Fed's key short-term rate over 12 31 Jul 2019 a “prime rate.” However, lowering this benchmark rate means lower interest rates on loans that are based off the Fed's main short-term rate.