The Fed may raise interest rates this week. Here's where you should keep your money if that happens.
Summary
The Federal Reserve is likely to raise interest rates on September 16, which will affect borrowing costs and savings. While traditional savings accounts offer very low returns, other options like certificates of deposit (CDs), high-yield savings accounts, and money market accounts can help savers earn more interest.Key Facts
- The Fed may increase its benchmark interest rate by 0.25% to between 3.75% and 4.00%.
- Higher rates make borrowing more expensive for homes, personal loans, and credit cards.
- Traditional savings accounts have low average interest rates around 0.38%, below inflation.
- Certificates of deposit (CDs) offer fixed interest rates up to about 4.5%, but early withdrawals have penalties.
- High-yield savings accounts have variable rates above 4%, which can rise with future Fed hikes.
- Money market accounts offer rates just under 4% and allow check writing for easier access.
- Savers should consider these accounts to benefit from higher interest rates while managing access to their money.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
