|
|
Prime Rate
What Does Prime Rate Mean? The interest rate that commercial banks charge their most credit-worthy customers. Generally a bank's best customers consist of large corporations.
Investopedia explains Prime Rate Default risk is the main determiner of the interest rate a bank will charge a borrower. Because a bank's best customers have little chance of defaulting, the bank can charge them a rate that is lower than the rate that would be charged to a customer who has a higher likelihood of defaulting on a loan.
Rate this Term: Your Rating:
Overall Rating:
Vote Now!
|
CURRENT HIGH YIELD SAVINGS RATES
Rate data provided by
|