Primary credit is the type of loan that the Federal Reserve provides to financially sound depository institutions on a very short-term basis (typically overnight). The interest rate charged for primary credit is the discount rate, which is set above the usual federal funds rate target. Because Gift Bank is a sound financial institution borrowing at a higher rate than the federal funds rate, this refers to primary credit.

Secondary credit is provided to banks that are not eligible for primary credit, usually carrying an even higher interest rate. Seasonal credit is provided to smaller institutions that experience recurring intra-year fluctuations in funding needs.