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What is the Federal Funds Rate?

The Federal Funds Rate is the interest rate at which financial institutions lend funds to each other.

The Federal Funds Rate can change over time. You can find historical Federal Funds Rates (including the current rate) here.

Many variable interest rates use the Federal Funds Rate as a benchmark, and change when the Federal Funds Rate changes.

All investing involves risk, including the loss of your principal investment(s), and past performance does not guarantee future results. Margin lending can add to these risks, and investors should carefully review those risks as part of their overall financial strategy. Diversification strategies do not guarantee a profit or protect against loss in declining markets. Learn more about Portfolio Line of Credit in the Margin Handbook.

Financial advisory services are offered by Wealthfront, Inc., an SEC-registered investment adviser. Brokerage products and services are offered by Wealthfront Brokerage Corporation, member FINRA / SIPC, and a wholly-owned subsidiary of Wealthfront, Inc.

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