In the last 12 months, interest rates have risen at a pace we haven’t seen since the late ’70s. Even for avid market watchers, this fact should cut through the noise and signal we’re in a historic new era of high rates.
Understanding how we got here isn’t just interesting — it’s vital to helping you plan how (and where) to move your money to make sure it’s shielded from the challenges of a high-rate environment while taking advantage of higher annual percentage yields. Here are two actions you can take immediately to make the most of this moment, along with an explanation of how we got here and where we may be going.
Move your savings to a high-yield account
Right now, the best high-yield savings accounts have interest rates above 4%. “Savings is now very valuable,” says Elliot Eisenberg, chief economist at GraphsandLaughs, an economic consulting firm. “If you have savings don’t leave it where it used to be, inside a checking account that pays you nothing … make sure to get good returns on your savings.”
UFB Direct has the UFB Best Savings account which currently has a 4.21% APR and no monthly fees or minimum balances.
Pay down high-interest debt
The flip side of higher savings account rates is that debt is also more expensive.
As credit card APRs climb toward 20%, you may be able to save more by prioritizing paying down high-interest debt. It could also make sense to “borrow other money to pay off more expensive money,” Eisenberg says. However, any money you borrow comes with a cost that is only increasing along with interest rates.
A debt consolidation loan can help you >>> Read More
https://www.cnbc.com/select/interest-rate-trends/