Interest rates have never looked better for savers. But you shouldn’t put all your eggs in one basket, or in this case, CD.
With the Federal Reserve’s recent quarter percentage point rate hike, interest rates have reached a new high. At 5.25% to 5.5%, this is the highest the benchmark federal funds rate has been since 2002.
This era of higher interest rates makes borrowing money expensive, but it can also make saving money lucrative.
Interest rates may be near a cyclical peak, creating an opportunity for some to lock in higher yield savings. This could be especially important for retirees living on a fixed income who want the security of a guaranteed rate.
Since rates are cyclical and are likely to decrease at some point in the future, I’d like to talk today about how you can capitalize on the higher rates while they last.
Hi, I’m John Gigliello, Certified Financial Planner with the Albany Financial Group and you’re listening to Invest in Knowledge, a podcast about all things financial. After a life-altering health issue at age 39, my calling in life became clear: To share my knowledge of personal finance with PEOPLE who are looking to make smart and responsible choices with their money. Only through education, action and accountability can YOU build the confidence and security YOU need to live a SATISFYING life.
In today’s episode I am going to address the upside of higher interest rates, particularly for those who have reached the retirement phase of their lives. The inspiration for this episode comes from a Wall Street Journal article, which addressed this very issue on April 18, 2023.