Here's how to manage your savings as interest rates fall—and when they rise again:
Interest rates will always rise and fall and some consumers might think they need to scramble to adjust their financial plans with every rate change. But doing so could do more harm than good.
Before consumers jump the gun and panic over any rate change—whether it’s an increase or a decrease—they should keep these basic strategies in mind:After the Federal Reserve cuts interest rates, savings account products will likely adjust their yields to follow suit. A knee-jerk reaction to earning less on your savings might be to go out and seek a better yield elsewhere.
Consumers who already have a set savings strategy in, say, a high-yield savings account, might want to consider staying put with their money. While it never hurts to check competitors’ rates, if your bank or fintech is lowering what it pays, chances are, it could be a red flag.Those who want to take action against the possibility of interest rates continuing to fall this year can lean into a ladder strategy.
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