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What Is the Prime Rate?

By Matthew Frankel, CFP – Updated Feb 26, 2025 at 2:36PM

Key Points

  • Prime rate at 8.5% in Jan 2024, closely follows the federal funds rate.
  • Credit card and HELOC rates often adjust based on changes in the prime rate.
  • Mortgage and auto loan rates are influenced by, but not directly tied to, the prime rate.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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