follow Dictionary.com

7 Essential Words of Fall

prime rate

noun, Banking.
1.
the minimum interest rate charged by a commercial bank on short-term business loans to large, best-rated customers or corporations.
Also called prime, prime interest rate, prime lending rate.
Origin
1955-1960
1955-60
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
Cite This Source
Examples from the web for prime rate
  • As a rule, credit-card rates are quick to rise along with the prime rate, but fall more slowly.
  • The prime rate is used for many short-term consumer and business loans.
  • Its business customers include payday lenders, rental purchase stores and non-prime rate auto lenders.
  • Loans will be amortized at one point below prime rate on the date of loan closing over a fifteen year term.
  • Rates are pegged to no more that four percent over the prime rate.
  • The general interest rate will be two points above the current prime rate.
British Dictionary definitions for prime rate

prime rate

noun
1.
the lowest commercial interest rate charged by a bank at a particular time
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition
© William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012
Cite This Source
prime rate in Culture

prime rate definition


The interest rate that banks charge to corporations that are considered excellent risks.

Note: The prime rate is usually the lowest prevailing interest rate; if it rises, rates available to consumers will soon rise.
The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
Cite This Source

Word of the Day

Difficulty index for prime rate

Few English speakers likely know this word

Word Value for prime

9
11
Scrabble Words With Friends