The Prime Rate increased to 8.25% effective May 4, 2023.

Prime Rate

Current Prime Rate

 

 

What is the Prime Rate?

The current Prime Rate is 8.25% which became effective May 4, 2023 for almost all banks.

The Prime Rate is the interest rate charged by banks to their most creditworthy customers (usually the most prominent and stable business customers). The prime rate is almost always the same amongst major banks. Banks make adjustments to the prime rate at the same time; although the rate does not adjust on any regular basis.  The Prime Rate today is usually adjusted at the same time and in correlation to the adjustments of the Fed Funds Rate, which is set by a special rate setting committee of the Federal Reserve called the FOMC. In recent history, the Prime Interest Rate has been set at 3% over the high end of the range for Fed Funds.

The graph and chart reported below are based upon the rates on the first day of each respective month over the past decade.   Some banks use the name “Reference Rate” or “Base Lending Rate” or “Base Rate” or “Preferred Rate” to refer to their current Prime Rate which they use as a benchmark for commercial loans and consumer loans.  Publications may also refer to the Wall Street Journal Prime Lending Rate or the WSJ Prime Lending Rate. In addition to commercial loans and credit card rates, many consumer loans are based upon the Prime Rate today, including credit products like home equity loans, car loans, and personal loans.

 

 

Current Prime Rate

Current Prime Rate Graph

 

Recent Prime Rate History

(rate on first of each month – for specific change dates see here)

Current Prime Rate Chart

Source: Federal Reserve Board, Proprietary Bank Surveys

 

Complete Prime Rate History

(1930 to Present – for specific change dates see here)

Prime Rate History - Graph

 

Prime Rate Change Dates Since 1955

Change DatePrime Rate
2023-May-48.25%
2023-March-238.00%
2023-February-27.75%
2022-December-157.50%
2022-November-37.00%
2022-September-226.25%
2022-July-285.50%
2022-June-164.75%
2022-May-54.00%
2022-March-173.50%
2020-March-163.25%
2020-March-44.25%
2019-October-314.75%
2019-September-195.00%
2019-August-15.25%
2018-December-205.50%
2018-September-275.25%
2018-June-145.00%
2018-March-224.75%
2017-December-144.50%
2017-June-154.25%
2017-March-164.00%
2016-December-153.75%
2015-December-173.50%
2008-December-163.25%
2008-October-294.00%
2008-October-84.50%
2008-April-305.00%
2008-March-185.25%
2008-January-306.00%
2008-January-226.50%
2007-December-117.25%
2007-October-317.50%
2007-September-187.75%
2006-June-298.25%
2006-May-108.00%
2006-March-287.75%
2006-January-317.50%
2005-December-137.25%
2005-November-17.00%
2005-September-206.75%
2005-August-96.50%
2005-June-306.25%
2005-May-36.00%
2005-March-225.75%
2005-February-25.50%
2004-December-155.25%
2004-November-105.00%
2004-September-214.75%
2004-August-114.50%
2004-July-14.25%
2003-June-274.00%
2002-November-74.25%
2001-December-124.75%
2001-November-75.00%
2001-October-35.50%
2001-September-186.00%
2001-August-226.50%
2001-June-286.75%
2001-May-167.00%
2001-April-197.50%
2001-March-218.00%
2001-February-18.50%
2001-January-49.00%
2000-May-179.50%
2000-March-229.00%
2000-February-38.75%
1999-November-178.50%
1999-August-258.25%
1999-July-18.00%
1998-November-187.75%
1998-October-168.00%
1998-September-308.25%
1997-March-268.50%
1996-February-18.25%
1995-December-208.50%
1995-July-78.75%
1995-February-19.00%
1994-November-158.50%
1994-August-167.75%
1994-May-177.25%
1994-April-196.75%
1994-March-246.25%
1992-July-26.00%
1991-December-236.50%
1991-November-67.50%
1991-September-138.00%
1991-May-18.50%
1991-February-49.00%
1991-January-29.50%
1990-January-810.00%
1989-July-3110.50%
1989-June-511.00%
1989-February-2411.50%
1989-February-1011.00%
1988-November-2810.50%
1988-August-1110.00%
1988-July-149.50%
1988-May-119.00%
1988-February-28.50%
1987-November-58.75%
1987-October-229.00%
1987-October-79.25%
1987-September-48.75%
1987-May-158.25%
1987-May-18.00%
1987-April-17.75%
1986-August-267.50%
1986-July-118.00%
1986-April-218.50%
1986-March-79.00%
1985-June-189.50%
1985-May-2010.00%
1985-January-1510.50%
1984-December-1910.75%
1984-November-2811.25%
1984-November-811.75%
1984-October-2912.00%
1984-October-1612.50%
1984-September-2712.75%
1984-June-2513.00%
1984-May-812.50%
1984-April-512.00%
1984-March-1911.50%
1983-August-811.00%
1983-February-2510.50%
1983-January-1111.00%
1982-November-2211.50%
1982-October-1312.00%
1982-October-713.00%
1982-August-2313.50%
1982-August-1814.00%
1982-August-1614.50%
1982-August-215.00%
1982-July-2915.50%
1982-July-2016.00%
1982-February-2316.50%
1982-February-1717.00%
1982-February-216.50%
1981-December-115.75%
1981-November-2416.00%
1981-November-1616.50%
1981-November-917.00%
1981-November-217.50%
1981-October-1318.00%
1981-October-519.00%
1981-September-2219.50%
1981-September-1620.00%
1981-July-820.50%
1981-June-120.00%
1981-May-2220.50%
1981-May-1820.00%
1981-May-1119.50%
1981-May-419.00%
1981-April-2918.00%
1981-April-2017.50%
1981-April-117.00%
1981-March-2717.50%
1981-March-2417.00%
1981-March-1717.50%
1981-March-1018.00%
1981-March-318.50%
1981-February-2319.00%
1981-February-319.50%
1981-January-920.00%
1981-January-220.50%
1980-December-1921.50%
1980-December-1621.00%
1980-December-1020.00%
1980-December-519.00%
1980-December-218.50%
1980-November-2617.75%
1980-November-2117.00%
1980-November-1716.25%
1980-November-615.50%
1980-October-2914.50%
1980-October-1714.00%
1980-October-113.50%
1980-September-2613.00%
1980-September-1912.50%
1980-September-1212.25%
1980-September-812.00%
1980-August-2711.50%
1980-August-2211.25%
1980-July-2311.00%
1980-July-711.50%
1980-June-1712.00%
1980-June-1312.50%
1980-June-613.00%
1980-May-2814.00%
1980-May-2314.50%
1980-May-1616.50%
1980-May-717.50%
1980-May-118.50%
1980-April-1819.50%
1980-April-220.00%
1980-March-2819.50%
1980-March-1919.00%
1980-March-1418.50%
1980-March-717.75%
1980-March-417.25%
1980-February-2916.75%
1980-February-2216.50%
1980-February-1915.75%
1979-December-715.25%
1979-November-3015.50%
1979-November-1615.75%
1979-November-915.50%
1979-November-115.25%
1979-October-2415.00%
1979-October-914.50%
1979-September-2813.50%
1979-September-2013.25%
1979-September-1413.00%
1979-September-712.75%
1979-August-2812.25%
1979-August-1612.00%
1979-July-2711.75%
1979-June-1911.50%
1978-December-2611.75%
1978-November-2411.50%
1978-November-1711.00%
1978-November-610.75%
1978-November-110.50%
1978-October-2710.25%
1978-October-1310.00%
1978-September-289.75%
1978-September-159.50%
1978-September-19.25%
1978-June-309.00%
1978-June-168.75%
1978-May-268.50%
1978-May-58.25%
1978-January-108.00%
1977-October-247.75%
1977-October-77.50%
1977-September-167.25%
1977-August-227.00%
1977-May-276.75%
1977-May-136.50%
1976-December-106.25%
1976-October-296.50%
1976-October-16.75%
1976-August-27.00%
1976-June-47.25%
1976-June-17.00%
1976-January-216.75%
1976-January-127.00%
1975-December-17.25%
1975-November-47.50%
1975-October-277.75%
1975-September-158.00%
1975-August-117.75%
1975-July-257.50%
1975-July-187.25%
1975-June-97.00%
1975-May-207.25%
1975-March-257.50%
1975-March-197.75%
1975-March-108.00%
1975-March-38.25%
1975-February-248.50%
1975-February-188.75%
1975-February-39.00%
1975-January-289.50%
1975-January-1310.00%
1974-November-2510.25%
1974-November-1310.75%
1974-November-611.00%
1974-October-2211.25%
1974-October-811.75%
1974-July-812.00%
1974-June-2711.75%
1974-May-1711.50%
1974-May-1011.25%
1974-May-711.00%
1974-May-210.75%
1974-April-2510.50%
1974-April-2210.25%
1974-April-1110.00%
1974-April-89.75%
1974-April-49.50%
1974-April-19.25%
1974-March-229.00%
1974-February-258.75%
1974-February-199.00%
1974-February-119.25%
1974-January-299.50%
1973-December-39.75%
1973-October-299.50%
1973-October-239.75%
1973-September-1810.00%
1973-August-289.75%
1973-August-219.50%
1973-August-139.25%
1973-August-69.00%
1973-July-308.75%
1973-July-188.50%
1973-July-98.25%
1973-July-28.00%
1973-June-227.75%
1973-June-77.50%
1973-May-257.25%
1973-May-77.00%
1973-April-196.75%
1973-March-266.50%
1973-February-276.25%
1972-December-276.00%
1972-October-35.75%
1972-August-295.50%
1972-June-275.25%
1972-March-315.00%
1972-March-204.75%
1972-February-164.50%
1972-January-184.75%
1972-January-35.00%
1971-December-175.25%
1971-November-85.50%
1971-October-205.75%
1971-July-76.00%
1971-April-235.50%
1971-March-195.25%
1971-March-115.50%
1971-February-165.75%
1971-January-186.00%
1971-January-156.25%
1971-January-66.50%
1970-December-226.75%
1970-November-237.00%
1970-November-127.25%
1970-September-217.50%
1970-March-258.00%
1969-June-98.50%
1969-March-177.50%
1969-January-77.00%
1968-December-186.75%
1968-December-26.50%
1968-September-256.25%
1968-April-196.50%
1967-November-206.00%
1967-March-275.50%
1967-January-265.75%
1966-August-166.00%
1966-June-295.75%
1966-March-105.50%
1965-December-65.00%
1960-August-234.50%
1959-September-15.00%
1959-May-184.50%
1958-September-114.00%
1958-April-213.50%
1958-January-224.00%
1957-August-64.50%
1956-August-214.00%
1956-April-133.75%
1955-October-143.50%
1955-August-43.25%

 

What are the effects of changes in the Prime Rate?

The effects from a change in the rate will depend on the direction and magnitude of the change, as well as the specific circumstances of the consumer, but below are some possible effects:

1. Affordability of loans: When the rate changes, it can affect the affordability of loans for consumers. For example, if the rate goes up, adjustable-rate mortgage loans (ARM loans), home equity lines of credit, and personal loans can become more expensive, which can make it harder for consumers to afford them. Conversely, if the rate goes down, these loans can become more affordable, which can make it easier for consumers to borrow money.

2. Credit card rates: Credit card interest rates are often tied to the prime rate. So, when the rate changes, it can affect the interest rates on credit card balances. If the rate goes up, credit card rates can increase, which can make it more expensive for consumers to carry a balance on their credit cards. If the rate goes down, credit card rates can decrease, which can make it easier for consumers to pay off their balances.

3. Consumer spending: Changes in the rate can also affect consumer spending. For example, if borrowing costs become more expensive, consumers may be less likely to take out loans, which can reduce spending. On the other hand, if borrowing costs become more affordable, consumers may be more likely to borrow money, which can stimulate spending.

4. Disposable income: Changes in the rate can also affect the disposable income of consumers. If borrowing costs become more expensive, consumers may have less money available for other expenses, which can reduce disposable income. Conversely, if borrowing costs become more affordable, consumers may have more money available for other expenses, which can increase disposable income.


 

This page explains what is today’s prime rate. If you are looking for mortgage rates, they can be found on our Mortgage Rates page.

Reasonable efforts are made to maintain accurate information. However, information could contain errors or inaccuracies and is presented without warranty. No liability is assumed for errors or omissions.