In today’s dynamic and ever-changing economic climate, staying abreast of the latest AFR rates is crucial for individuals and businesses alike. The AFR serves as a benchmark for determining fair and equitable interest rates in a wide range of financial transactions. These rates are used to determine the minimum interest rates that must be charged for certain transactions, such as loans between family members or the sale of the property on an installment basis. Here is what you need to know about the May AFR rates: The Table below shows the AFR rates for each month of 2023 up to May, including the Short-Term AFR, Mid-Term AFR, and Long-Term AFR. As you can see, the rates have fluctuated slightly over the first few months of the year. May AFR rates represent a significant decrease in the Short-Term AFR compared to the previous month.
Short-Term AFR Rates for May 2023
| Month | Year | Annual | Semiannual | Quarterly | Monthly |
| January | 2023 | 4.50% | 4.45% | 4.43% | 4.41% |
| February | 2023 | 4.47% | 4.42% | 4.40% | 4.38% |
| March | 2023 | 4.50% | 4.45% | 4.43% | 4.41% |
| April | 2023 | 4.86% | 4.80% | 4.77% | 4.75% |
| May | 2023 | 4.30% | 4.25% | 4.23% | 4.21% |
Mid-Term AFR Rates for May 2023
| Month | Year | Annual | Semiannual | Quarterly | Monthly |
| January | 2023 | 3.85% | 3.81% | 3.79% | 3.78% |
| February | 2023 | 3.82% | 3.78% | 3.76% | 3.75% |
| March | 2023 | 3.70% | 3.67% | 3.65% | 3.64% |
| April | 2023 | 4.15% | 4.11% | 4.09% | 4.08% |
| May | 2023 | 3.57% | 3.54% | 3.52% | 3.51% |
Long-Term AFR Rates for May 2023
| Month | Year | Annual | Semiannual | Quarterly | Monthly |
| January | 2023 | 3.84% | 3.80% | 3.78% | 3.77% |
| February | 2023 | 3.86% | 3.82% | 3.80% | 3.79% |
| March | 2023 | 3.74% | 3.71% | 3.69% | 3.68% |
| April | 2023 | 4.02% | 3.98% | 3.96% | 3.95% |
| May | 2023 | 3.72% | 3.69% | 3.67% | 3.66% |
The AFR serves as a benchmark for determining interest rates on various loans, including intra-family loans, installment sales, and certain estate planning strategies. The AFR ensures fairness and consistency in financial dealings by providing a standardized rate. With the economy showing signs of stability and recovery, it is essential to stay updated on the current AFR rates to make informed decisions regarding loans, investments, and other financial matters.