Author: Rachel Slifka / Source: Wise Bread
Interest rates went up three times in 2017, and they are under consideration to be increased yet again within the next couple of months. As interest rates continue to rise, what does that mean for you as a borrower?
While rising interest rates means it costs more for you to borrow, it also can work in your favor.
Here are a few examples of how The Federal Reserve hikes can benefit you financially.1. Throw more into savings
Savings accounts and certificates of deposit have been at historically low interest rates in the past few years. While a hike in federal interest rates won’t make you rich, it can give you a slight boost in your savings power, for no extra work. (See also: Best Online Savings Accounts)
As interest rates increase, now is a great time to start socking extra money away into savings accounts and CDs. While putting extra money into savings might not result in as much interest earned from other saving avenues, such as retirement accounts or other investments, you can use the higher interest rates as an incentive to boost your savings or emergency fund contributions.
2. Take advantage of still low interest rates
During the financial crisis of 2007, the credit bubble burst, causing lending to come to a near halt. The Federal Reserve drove interest rates to the floor, and eventually pulled lenders…
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