Under the primary credit program, loans are extended for a very short term (usually overnight) to depository institutions in generally sound financial condition. Depository institutions that are not eligible for primary credit may apply for secondary credit to meet short-term liquidity needs or to resolve severe financial difficulties. Seasonal credit is extended to relatively small depository institutions that have recurring intra-year fluctuations in funding needs, such as banks in agricultural or seasonal resort communities.

The discount rate charged for primary credit (the primary credit rate) is set above the usual level of short-term market interest rates. (Because primary credit is the Federal Reserve's main discount window program, the Federal Reserve at times uses the term "discount rate" to mean the primary credit rate.) The discount rate on secondary credit is above the rate on primary credit. The discount rate for seasonal credit is an average of selected market rates. Discount rates are established by each Reserve Bank's board of directors, subject to the review and determination of the Board of Governors of the Federal Reserve System. The discount rates for the three lending programs are the same across all Reserve Banks except on days around a change in the rate.

Further information on the discount window, including interest rates, is available from the Federal Reserve System's discount window web site. See also the articles in the Federal Reserve Bulletin for July 2002 (51 KB PDF) and November 1994 (75 KB PDF).

Minutes of Board of Governors discount rate meetings
May 17 to June 30, 2004 (84 KB PDF)
March 29 to May 3, 2004 (68 KB PDF)
February 9 to March 15, 2004 (65 KB PDF)
December 15, 2003, through January 26, 2004 (68 KB PDF)
November 10 through December 8, 2003 (68 KB PDF)
September 29 to October 27, 2003 (71 KB PDF)
September 2 through September 15, 2003 (61 KB PDF)
July 7 through August 11, 2003 (67 KB PDF)
May 19 to June 25, 2003 (93 KB PDF)
March 31 to May 5, 2003 (88 KB PDF)
February 10 to March 17, 2003 (71 KB PDF)
January 6 to January 27, 2003 (54 KB PDF)
November 18 to December 9, 2002 (66 KB PDF)
October 7 to November 6, 2002 (75 KB PDF)
September 3 to September 23, 2002 (73 KB PDF)
July 22 to August 12, 2002 (21 KB PDF)
May 20 to June 24, 2002 (52 KB PDF)
April 1 to May 6, 2002 (52 KB PDF)
February 4 to March 18, 2002 (50 KB PDF)
December 17, 2001, to January 28, 2002 (52 KB PDF)
November 19 to December 11, 2001 (52 KB PDF)
October 15 to November 6, 2001 (53 KB PDF)
September 24 to October 2, 2001 (50 KB PDF)
May 21 to September 17, 2001 (69 KB PDF)