How to Prepare for Higher Interest Rates

February 8, 2022 By: bankofeaston

For several years now, we’ve enjoyed the lowest interest rates in many decades. However, the Federal Reserve recently revealed plans to increase rates this year gradually. So how might this affect your finances?

The federal funds rate, which the central bank sets, is the overnight interest rate at which banks borrow from one another. It also influences the prime interest rate, which lenders use to determine how much interest you’ll pay on credit cards, mortgages, and other loans. So when the federal funds rate goes up, the prime rate tends to follow.

CNBC has written a very informative article about four ways to prepare for higher rates. To learn more, Click Here.

*You are being directed to a website other than the official Bank of Easton website. Although we have verified the accuracy of this link from our website to this third party, the ownership of the domain names and content of the web pages may change without notice and is the responsibility of the third party. We are not responsible for the content, views, or privacy policies of the third-party site. The privacy policy of the third party site may differ from that of Bank of Easton. Click OK to proceed to the third party website. If you wish to remain on the Bank of Easton website, simply close this page in your browser. Thank you.