This month it was announced that the Federal Reserve increased interest rates. This interest rate hike will affect American household budgets, how will you know if your rates are affected?
SAVINGS-
If you were thinking about opening a savings account or certificate of deposit, it would be a perfect time to do so. As of right now,
-The national savings account interest rate went from 0.6% to 0.7%
-Rates on 36-month CD went from 0.48% to 0.65%.
Internet bank interest rates are slightly different.
– Ally financial has a 1.45% rate for a savings account
– 1.85% for a 36 month CD
– Synchrony has a 1.55% interest rate for their savings account
– 2.10% rate for a 36-month CD
Compare your bank to online banking interest rates.
LOANS AND DEBTS-
Because of the increased interest rates, buying a house this year may be a bit more costly.
EFFECTS ON INTEREST RATE HIKES ON-
Owing money on credit cards-
Any change will take a month or two to be reflected in your annual percentage rate (APR), but when it hits it will become costlier to carry balances and monthly minimum payments may increase.
If you have money in a savings account-
Look for steady increases at competitive online banks, which already offer yields more than 20 times the national average.
If you’re ready to buy a home-
Don’t let moderately higher mortgage rates dissuade you. Keep in mind rates still fall far short of the historical average of 8%.
In today’s heavily regulated market, tax benefits and investment dividends achieved through retirement plans can be significant. Many plans offer immediate dollar-for-dollar tax savings. But the rules are diverse and complex.
Cosmo Financial’s expert consultants can help you achieve your financial objectives through a host of wealth building investment strategies and a full range of variable products to help complement your current financial position. Call for an appointment at your convenience.
Employee Benefit Programs
Employer sponsored retirement plans can be a vital asset to your company as well as your employees providing significant tax incentives to save and invest for retirement. Cosmo Financial works closely with both small and large employers in the corporate and non-profit sectors to identify the proper plans for your company. Our broad range of programs include:
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