Benefits of Higher Interest Rates
Don’t Fear Rising Interest Rates: High-Yield Savings Accounts Offer Lucrative Options
When it comes to rising interest rates, there tends to be a lot of gloom-and-doom discourse about the danger that more expensive borrowing costs pose to the U.S. economy. But there is also a silver lining in higher rates for many consumers.
The Benefits of High-Yield Savings Accounts
While the Federal Reserve hikes interest rates, it creates higher rates on consumer and business loans, which slows the economy by forcing employers to cut back on spending. For most borrowers, the higher interbank lending rate – which affects borrowing costs, including everything like home equity lines of credit, auto loans and credit cards – is bad news. Even a slightly higher rate for both can mean thousands of dollars for consumers to pay.
However, most banks and credit unions will raise their savings rate during periods of higher interest rates, making it a good chance for some Americans, particularly retirees living off of their savings, to earn more. Thanks to the Fed’s aggressive rate-hike campaign that began more than a year ago, there are now far more lucrative options for savers: high-yield savings accounts.
Many high-yield savings accounts are now paying between 4.2% and 4.8%, providing a low-risk option for consumers who are seeking a lower-risk return. Savers can open an online high-yield savings account, but they should make sure the bank is insured by the Federal Deposit Insurance Corporation.
Top High-Yield Savings Accounts
There are now more than two dozen nationally available savings and money market deposit accounts from FDIC-insured banks paying a rate of 3.75% or higher, according to Bankrate. Some of the best rates are being offered by:
- Vio Bank (4.77%, with a minimum balance of $100)
- BankPurely (4.75%, with a minimum balance of $25,000)
- CIBC Bank USA (4.37%, with a minimum balance of $1)
- Emigrant Bank (4.35%, with a minimum balance of $0)
Apple also recently debuted a new savings account in partnership with Goldman Sachs. The savings account is available to Apple Card customers and offers a yield of 4.15% with no minimum deposits and no fees. The account reportedly attracted as much as $990 million in deposits in the first four days of its launch, according to a recent report from Forbes.
Investing vs. Saving
While high-yield savings accounts offer a low-risk option for earning more, experts caution that investing your money could yield even higher returns. However, the top-yielding savings accounts are the only free lunch in finance – you get additional return but don’t have to take risk to get it. Whether rates are high or low, it pays to shop around to make sure you’re getting the most out of your money. The advantages are readily apparent now with interest rates at a 15-year-high.
Don’t fear rising interest rates – take advantage of the benefits they offer by exploring high-yield savings accounts.
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Frontier Airlines Takes Passenger on Unexpected Adventure to Foreign Country
Imagine booking a flight to sunny Florida, only to end up in a foreign country without a passport. That’s exactly what happened to one Frontier Airlines passenger.
The Unfortunate Mishap
Due to a mix-up in the boarding process, the passenger was accidentally placed on the wrong flight. Instead of landing in Florida, they found themselves in a foreign country without proper documentation.
Despite the unexpected turn of events, the passenger remained calm and worked with airline officials to resolve the situation.
Frontier Airlines’ Response
Frontier Airlines has since apologized for the mistake and offered the passenger a full refund for their ticket. The airline has also implemented new procedures to prevent similar incidents from occurring in the future.
Lessons Learned
This unfortunate mishap serves as a reminder to always double-check your flight details and travel documents before boarding. It’s also a testament to the importance of remaining calm and working with officials to resolve any unexpected situations that may arise during travel.
- Always double-check your flight details and travel documents before boarding
- Remain calm and work with officials to resolve any unexpected situations during travel
Travel can be unpredictable, but with the right mindset and preparation, you can handle any situation that comes your way.
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