US bank prime interest rate
US bank prime interest rate stood at 7% on Oct 13, 2026, according to FRED (Federal Reserve Bank of St. Louis). It is one of the indicators in the Market interest rates table (Value · Daily), with a complete series running from Aug 4, 1955 to Oct 13, 2026. The complete series with an interactive chart, free to download.
This indicator in the Market interest rates table
| Indicator | 16-10-2026 | 15-10-2026 | 14-10-2026 | 13-10-2026 | 12-10-2026 | 09-10-2026 | 08-10-2026 | 07-10-2026 | 06-10-2026 | 05-10-2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Bank prime interest rate | 7 | 7 | 7 | 7 | 7 | 7 | 7 | ||||
| Discount window interest rate (primary credit) | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | ||
| Discount window interest rate (secondary credit) | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 |
Understanding US bank prime interest rate
The bank prime loan rate is a reference rate used by commercial banks when pricing many dollar-denominated loans for high-credit-quality customers. It is neither an interest rate available to all borrowers, nor a cost of funds or a security's yield. Unlike the discount window rate in the same table, this is a benchmark for retail and corporate pricing; the contract-specific spread determines the actual interest rate paid by the customer.
This series typically changes in steps and may remain flat between adjustments, so daily comparisons mainly help identify the timing of rate changes. When assessing borrowing burdens, one must check whether contracts are directly pegged to this interest rate, the size of the spread, and whether floors or caps apply. It should not be mechanically compared with corporate bond yields: one is a loan quotation benchmark, while the other is a return formed in the debt securities market.
Frequently asked questions
- Do borrowers receive the exact benchmark interest rate?
- Usually no; contracts may add a margin depending on risk, collateral, and loan terms.
- How does this interest rate differ from the discount window interest rate?
- One serves as a benchmark for pricing commercial loans, while the other is tied to liquidity funding for depository institutions.
- Why are there prolonged flat segments on the chart?
- The reference rate typically changes only when monetary conditions or bank pricing policies shift sufficiently.