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prime rate definition - finance
The interest rate charged by a bank to its best, or prime, customers. Each bank has its own rate. An average of prime rates is listed in the Wall Street Journal. Consumers often are charged an interest rate on their credit cards that is based on the prime rate with a certain percentage added to it.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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