News this week that the Federal Reserve is raising interest rates yet again may have been expected, but it wasn’t particularly welcome. The Fed’s move to raise rates to a range between 5% to 5.25% will make rates on mortgage and mortgage refinance loans even higher. Interest rates on credit cards and personal loans will also likely suffer, all in order to continue battling still-high (albeit lower) inflation.
That said, there is a silver lining to increased rates, particularly for those who have been diligently saving their money. When the Fed bumps rates they typically move up across the board, which means interest rates on deposit vehicles like high-yield savings and certificates of deposits (CDs) accounts will also grow.
There are multiple ways to take advantage of today’s high rate environment. Here are two major ones:
R&I~Smit
FoundingFrog
Article URL : https://www.cbsnews.com/news/how-to-use-interest-rate-hikes-to-your-advantage/