Federal Reserve met and kept its key interest rate unchanged: What it means for your money
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.
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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