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What Is the Prime Rate?

By Matthew Frankel, CFPUpdated Feb 26, 2025 at 2:36 PM

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.

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