Monthly Archives: April 2024

The US prime rate is determined individually by each bank, but most follow the same formula. The major driving factor for the prime rate is the US federal funds target rate, which is set by the Federal Reserve. This rate is what the US government uses to control bank lending rates and, as such, influence […]

The prime rate may not change for years or may change several times within one year, especially in economically turbulent times. “The best and most creditworthy customers are usually corporate clients.” Banks generally use a formula of federal funds rate + 3 to determine the prime rate it charges its best customers, primarily large corporations […]