Discount Rate  The fully secured interest rate charged to
commercial banks and other depository institutions on loans they
receive from their regional Federal Reserve Bank. There are
three discount programs: primary credit (the term “discount
rate” usually refers to the primary credit rate since it is the
main program), secondary credit, and seasonal credit, each with
its own interest rate. Discount rates are established by each
Reserve Bank’s Board of Directors, subject to the review and
determination of the Board of Governors. The rates for the three
lending programs are the same across all Reserve Banks except on
days around a change in the rate.