Kiplinger's on Rising Savings Rates
Kiplinger's writes "How to Benefit From Rising Interest Rates." The article says, "[T]he Federal Reserve has moved up plans to wind down its bond-buying stimulus program and start lifting short-term rates. Kiplinger forecasts four hikes in 2022, with the first one in March. Rate hikes are a blessing and a curse for consumers. You'll pay higher interest rates on credit cards, home equity lines of credit, private student loans and more. And although you may not notice a rate bump in the beginning, if the Fed continues to raise rates over the next couple of years, your plans to repay any debt could get tougher. The good news is that savings rates tend to nudge up across the board, albeit slowly. Deposit levels are at record highs, so banks are less inclined to boost rates sooner <b:>." It adds, "Savers will get the best rates from savings and money market deposit accounts that are already providing top yields. You'll typically find those accounts at online banks or other online financial institutions. Savers could be earning a rate close to the federal funds rate by the time the Fed is done raising rates. And if the Fed hikes rates nine times in quarter-point installments, as it did between 2015 and 2018, that number could hit 2.25%. One high-rate account worth checking out is Bo Savings, which yields 0.65% and requires a $250 minimum opening deposit. Affinity Plus Federal Credit Union offers a money market account yielding 1% on balances up to $25,000."
