Prime rates may seem like a dry financial term reserved for bankers and economists, but in reality, they shape the everyday lives of everyone.
The prime rate is the benchmark interest rate that commercial banks charge their most creditworthy customers, and it acts as a foundation for many other forms of lending — from credit cards and personal loans to mortgages and auto financing.
United States — Recent Prime Rates
| Date | Prime Rate |
|---|---|
| September 1, 2025 | 7.38% |
| August 1, 2025 | 7.50% |
| July 1, 2025 | 7.50% |
| June 1, 2025 | 7.50% |
| May 1, 2025 | 7.50% |
| April 1, 2025 | 7.50% |
| March 1, 2025 | 7.50% |
| February 1, 2025 | 7.50% |
| January 1, 2025 | 7.50% |
| December 1, 2024 | 7.65% |
| November 1, 2024 | 7.81% |
| October 1, 2024 | 8.00% |
When the prime rate rises, borrowing money becomes more expensive, and that ripple effect hits consumers directly: groceries bought on credit cost more over time, monthly car payments climb, and the dream of homeownership can suddenly feel out of reach. On the other hand, when the rate falls, households and businesses alike feel a little more breathing room in their budgets, boosting purchasing power across the economy.
