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.

prime rate

noun

1. the lowest commercial interest rate charged by a bank at a particular time

prime rate

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

Notes

The prime rate is usually the lowest prevailing interest rate; if it rises, rates available to consumers will soon rise.

Word History and Origins

Origin of prime rate¹

First recorded in 1955–60