Higher Rates - A Blessing in Disguise for Your Wallet

Modernagebank.com Manoj Prasad

Green Curved Line

Savers benefit from higher interest rates, reaching levels not seen in 15 years, as savings account, CD, and bond interest income rises.

In savings accounts, money market funds, and CDs, over $18 trillion is held, making higher interest rates widespread and possibly profitable for consumers.

Savers earned approximately five times more interest on the average online savings account rate from 0.54% in January 2022 to 2.69% in November.

With 1-year CD rates doubling from 0.14% to 0.43%, savers are getting a greater return than with historically low rates during the Great Recession.

Higher yields can quickly compound savings, giving households a financial buffer. Interest income is directly connected to account balances and rates.

Fixed-rate loans protect over 95% of mortgage holders from rising Federal Funds Rates, guaranteeing steady housing costs.

Existing fixed-rate mortgage holders are financially secure despite the Federal Reserve's aggressive tightening effort, while new homebuyers may face rising rates.

Maximizing safe interest income is critical during rising inflation. Take advantage of rising returns by investing more in high-interest savings, money market accounts, and shorter-term CDs.

Financial advisors can recommend various fixed-income products, including structured CDs, interest-paying deposit certificates, and Treasury Inflation-Protected Securities (TIPS).

Meet Financial Advisor

Walser, a wealth advisor and tax mitigation attorney, uses her podcast “Crashes and Taxes” to explain micro- and macro-economic patterns to assist consumers manage their finances and preserve capital.

Headquarters: 777 South Harbour Island Boulevard Suite 440 Tampa, FL 33602 P. 1.866.92.WEALTH (866-929-3258) F. 1.866.627.2508