Interest rates are getting higher than Snoop Dogg at Coachella...and we're not celebrating 😫! The Fed recently raised rates a half of a percentage point. That's the biggest jump we've seen in 22 years 💥.
You might be wondering how this all affects average Joey and Janey, and don't worry - we've got you covered.
Here’s Five Fast Facts on rising rates:
- 💸 Savers For The Win - Higher interest rates mean some savings accounts rates get a little boost. Although it's small potatoes compared to what you'd make in the stock market, money in CDs and money market accounts will earn more than they have been.
- 💳 Where Credit's Due - Credit card interest rates increase when the Fed raises interest rates. If you carry a balance from month to month, you'll be affected more than if you pay them off.
- 🎓 Student Loans? It Depends - If you have a student loan through a federal borrower, your rates shouldn't change. But if you refinanced with a private lender, your interest rates could increase significantly.
- 👔 The Name's Bond - Like savings rates, government-backed bonds will see a positive rate increase, meaning your investments will be worth more. It also means the stock market will have to compete more against these investments that have been a huge bore for quite some time. Someone call Gordon Gekko.
- 💨📉Cool It Down - The ultimate goal of raising rates is to bring inflation down. It will take time, but the goal is to bring it from around 8% back to near 2%.
🔥Bottom line: As the powers-that-be work towards making the economy a little less Clown Town, it pays to be smart with your cash. For more tips on how to ride this coaster without barfing, check out this fun little article from a while back.
Have you been impacted by the rate hike? Let us know by connecting with us on Social Media and be sure to share this newsletter with any friends & coworkers!
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