BusinessCould the latest rise in interest rates affect your bank savings

    Could the latest rise in interest rates affect your bank savings

    Last Wednesday, March 22, the president of the Federal Reserve, Jerome Powell announced a new increase in the interest rate, It would be the ninth time since last year the objective of bringing inflation to 2% was set.

    In this last increase, the interest rate was located in a range of 4.75% to 5%; However, this does not seem to represent good news for credit card debtors, but rather for savers who are looking for higher yields on their deposits with this increase.

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    According to Bankrate financial company analyst Greg McBride, the yields on savings accounts and Certificates of Deposit (CDs) are currently the best in 15 years. Therefore, the higher the rates, the liquid savings can generate more money.

    Now, so that the return on your deposit is greater, specialists recommend having an online savings account, in a bank that is insured by the Federal Deposit Insurance Corporation (FDIC).

    This type of online bank, unlike the large banks that are already known, offer rates of up to 5%. While the others have an average of 0.23% for savings accounts. “You’re leaving a lot of money on the table if you don’t go to an online bank,” McBride said.

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    As for CDs, the federal government offers some with rates starting at 5.15% with insurance for up to one year and higher yields, compared to the average ones that only have 1.62%.

    Keep reading:

    Source: La Opinion

    This post is posted by Awutar staff members. Awutar is a global multimedia website. Our Email: [email protected]


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