Commercial Bank Interest Rate on Credit Card Plans, Accounts Assessed Interest
TERMCBCCINTNS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
22.25
Year-over-Year Change
33.63%
Date Range
11/1/1994 - 5/1/2025
Summary
This economic indicator tracks the average interest rate charged by commercial banks on credit card accounts where interest is assessed. It provides critical insight into consumer borrowing costs and credit market conditions.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The metric represents the weighted average interest rate applied to credit card balances that are actively accruing interest charges. Economists use this trend to understand consumer credit dynamics, lending practices, and potential financial stress in the banking sector.
Methodology
Data is collected through comprehensive surveys of commercial banks, aggregating interest rates across different credit card portfolios and account types.
Historical Context
Policymakers and financial analysts use this trend to assess monetary policy effectiveness, consumer spending potential, and overall credit market health.
Key Facts
- Reflects actual interest rates charged on credit card balances with outstanding interest
- Provides a dynamic view of consumer borrowing costs
- Influenced by Federal Reserve monetary policy and market conditions
FAQs
Q: How do credit card interest rates impact consumer spending?
A: Higher interest rates can reduce consumer spending by increasing borrowing costs and making credit more expensive. This can slow economic activity and consumer purchases.
Q: What factors influence credit card interest rates?
A: Interest rates are primarily influenced by the Federal Reserve's benchmark rate, individual bank policies, consumer credit scores, and overall economic conditions.
Q: How often is this data updated?
A: The Federal Reserve typically updates this data monthly, providing a current snapshot of credit card lending practices.
Q: Why do credit card interest rates matter for the economy?
A: Credit card rates impact consumer behavior, bank profitability, and can serve as an indicator of broader economic health and lending conditions.
Q: Are credit card interest rates the same for all consumers?
A: No, interest rates vary based on individual credit scores, bank policies, and current market conditions, creating a range of rates across different consumer segments.
Related Trends
Citation
U.S. Federal Reserve, Commercial Bank Interest Rate on Credit Card Plans, Accounts Assessed Interest [TERMCBCCINTNS], retrieved from FRED.
Last Checked: 8/1/2025