secondary credit rate, this rate would be set 50 basis points above the primary credit rate. As specified by the formula for the seasonal credit rate, this rate would be reset every two weeks as the average of the daily effective federal funds rate and the rate on three-month CDs over the previous 14 days, rounded to the nearest 5 basis points The primary credit rate, also known as the discount rate, is the rate the Reserve Bank charges depository institutions to borrow. Each Reserve Bank’s board of directors establishes the rate, subject to the review and determination of the Board of Governors of the Federal Reserve System. See current and previous discount rates. Federal Reserve credit is available to eligible banks, savings and loans, and credit unions. Primary Credit. Primary credit is available to generally sound depository institutions on a very short-term basis, typically overnight, at a rate above the Federal Open Market Committee’s target rate for federal funds.