Frequently Asked Questions(FAQ)

Is there a limit on the prime rate?

There is no limit on how high the prime rate can go. 

What was the highest prime rate ever recorded?

The highest prime rate ever recorded was on December 19, 1980 when the prime rate was 21.50%. 

Is the prime rate the only factor used to determine individual interest rates?

Plenty of other factors go into determining the interest rates consumers pay, including their credit scores and credit history, income, employment history, and more.

What is the current prime rate?

As of May 4, 2023, the current prime rate is 8.25%.


About the Authors

Holly Johnson

Written by: Holly Johnson

Award-Winning Personal Finance Contributor

I’m a professional writer who is obsessed with money, travel, and budgeting.

More about me

More About Glossary of Common Financial Terms

Show More