The discount rate actually indicates the rate at which certain banking institutions are allowed to take credit from the central bank. There are three main types of discount rates available on today’s market: the primary credit rate which is the most popular, the secondary credit rate (which involves different terms and conditions and interest rate because it is issued to institutions which present a higher degree of risk to the main lender) and what is known as “seasonal credit rate”

The US Federal Reserve dictates the tempo of these rates, in order to keep the economical wellbeing in a certain balance.