How The Fed Rate Hike Will Impact Credit Cards And Savings Accounts

The Federal Reserve is widely expected to increase interest rates for the first time since 2006 by a modest 0.25%. How will this increase impact you? The answer depends upon whether you have been a saver or a borrower. In a world of low interest rates, borrowers benefit from cheap loans while savers struggle with low returns. Today’s expected rate increase could usher in an era of more expensive borrowing and more rewarding savings. Unfortunately, borrowers should expect to see an almost immediate increase in interest rates. Savers, on the other hand, shouldn’t hold their breath.