How to Save, Even When Federal Interest Rates Are Rising
For the second time in three months, the Federal Reserve raised interest rates by 0.25%. It’s likely that this won’t be the last time this year that interest rates will be increased. So, what does that mean for you and your money? Simply put, you could be paying more in interest. But, we’ve found a few ways to help you save, even when the rates are going up.
Apply for a fixed rate credit card. The average consumer will pay an extra $40 per year for the interest on their credit cards, based on the current average interest rate of 15%. If you’d rather spend this $40 elsewhere, we have a card that’s right for you. The VISA® Gold Credit Card from FedChoice Federal Credit Union offers a fixed rate – that means you won’t have to worry about your rate going up when another interest rate change is made. And, with our rates well below the national average, free balance transfers and no annual fees, you could save in more ways than one.
Refinance your vehicle loan. You could be paying too much for your car. We’ve saved our members as much as $150 each month by refinancing their high interest auto loans. And while your situation might be different, we’ve got the tools that could save you money too!
Earn more on your money. Although the rates of interest have gone up, it’s not likely that your bank will start paying you more for your savings. Open a savings account at FedChoice and watch it grow effortlessly with Direct Deposit or automatic transfer. Plus, our Earn More account option lets you earn even more interest when you have an active checking account. From a simple Share Savings Account to an IRA account, we give you the tools to create the strong financial future you need. That way, you won’t have to fret if rates go up again.