Here’s how you can prepare if there's a half point rate hike from the Fed.
"Zero-percent balance transfer cards are alive and well," said Rossman, adding that cards offering 15, 18 and even 21 months with no interest on transferred balances are "a great way to save hundreds, maybe thousands of dollars in interest."While the Fed has no direct influence on deposit rates, they tend to be correlated to changes in the target federal funds rate. As a result,has been hovering near rock bottom, currently a mere 0.06%, on average.
"The worst would be if your borrowing cost increases but you are not benefiting from a higher savings rate," said Yiming Ma, an assistant finance professor at Columbia University Business School. The CDs that offer the highest yields typically have higher minimum deposit requirements versus an online savings account and require longer periods to maturity. That means that money isn't as accessible as it is in a savings account.
However, "if you have spare savings, think about deposits that can be set aside," Ma added. "Now is the time to make use of that increase in rates."As a general rule, the higher your credit score, the better off you'll be.
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