What Is A CD Account? How Does the Fed Rate Cut Affect My High Interest Savings Account?
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In this video I discuss What is a CD Account, as well as how the upcoming Fed Rate Cut will affect your high interest savings account.
This week the Federal Reserve will make their decision on whether to raise, increase, or keep the federal funds rate the same. This rate effects the amount of interest banks are willing to give via their checking accounts, savings accounts, as well as Certificate of Deposit Accounts, also known as CD’s.
When the Federal Reserve raises rates, banks increase the amount of interest they pay customers. This also increases the rate at which they charge customers for personal loans, mortgages, car loans, and other types of borrowing.
When the Federal Reserve decreases rates, this lowers the cost of borrowing. So interest rates for mortgages etc…will go down, while interest rates for savings also go down.
Let us know in the comments how fast the bank you currently use changed their rates, based on the Federal Reserves decision this week!
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What Is a Certificate of Deposit Bank Account, What Is A CD Account? How Does the Fed Rate Cut Affect My High Interest Savings Account?.
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What Is A CD Account? How Does the Fed Rate Cut Affect My High Interest Savings Account?, Get most shared replays related to What Is a Certificate of Deposit Bank Account.
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Oh, and do not forget that this isn’t a guaranteed approval. Some business will ask for a back interest on the whole unsettled balance at the end of your promotion period. No interest charge card are a fantastic way to conserve.
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