The Federal Reserve met Wednesday and held rates at the same level for the third straight meeting. So what does that mean for your wallet?
Your savings: Slow growth, but there’s a workaround
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If your money is sitting in a traditional checking or savings account, you’re likely earning very little.
- Checking accounts are averaging about 0.07%
- Savings accounts are around 0.39%
- High-yield savings accounts are still offering closer to 3% to 4%, meaning where you keep your money right now matters more than ever.
Your debt: Still expensive
If you’re carrying debt, there’s no relief here.
- Credit card interest rates are still hovering above 21%
- New credit cards can come with rates above 23.75%
- Personal loans are slightly lower, averaging around 11.5%
Buying a home: Expect rates to stay elevated
For anyone house hunting, mortgage rates have fluctuated around 6%. As of last week, the benchmark 30-year fixed rate mortgage rate fell to 6.23% from 6.3% the previous week.
Mortgage rates are driven more by the bond market than directly by the Fed.
Watch: Federal Reserve Chair Jerome Powell discusses decision to keep key interest rate steady
What you can do now to save:
- Move your savings into higher-yield accounts
- Pay down high-interest debt as aggressively as possible
- Shop around for better rates, especially on loans and accounts
- And don’t be afraid to negotiate your credit card interest rate
For more details on how to ask for a lower rate: Spring clean your finances with these easy ideas