Prime Rate

Prime rate is often considered the interest rate that banks charge their most credit worthy customers. However, in practice, an applicable spread is typically added on top of prime to reach the all-in-interest rate. As the base rate (prime) rises so does the all-in-interest rate.

The chart above is interactive. There is also a sliding scale below the graph so you can isolate various time periods.

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Fed Funds Rate

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Nominal vs. Real Returns