What is the discount rate?

the rate customers of savings banks get for borrowing money

a special rate that member banks of the Federal Reserve get for their financial operations

the amount that a bank must subtract for its reserves

the rate the Fed charges for loans to commercial banks

The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility--the discount window. The Federal Reserve Banks offer three discount window programs to depository institutions: primary credit, secondary credit, and seasonal credit, each with its own interest rate. All discount window loans are fully secured.