Joseph Dillard

It was exciting for borrowers when interest rates were low. They were able to buy more house or car than they would have been able to at higher interest rates. For some it meant that they could finally realize the dream of home ownership. It was also a good time for lenders. They made a lot of money. However, interest rates on savings accounts were low! They were very low. They were 0.05% in some places. Saving money did not seem to be paying off.

Then things changed. Interest rates on loans started to rise. Those same houses and cars became less affordable. That dream of home ownership started to drift away again for some. Lenders are not as happy. In fact, some employees were laid off in loan departments. They had to find new jobs. What goes up must come down. But what goes down usually comes back up again. That’s what happened to savings accounts. Now, some savings accounts have interest rates above 3.00%.

Rising rates are not all bad. Loan rates are given more attention. But if you have money to put into a savings account, you might have a smile on your face. You’re getting a lot more interest than just 12 months ago. That means you’re being paid to have your money sit in your savings account. This is another reason why it is so important to pay off your outstanding debt. All bad news is not bad for everyone. Especially when it comes to money. You have to look at your personal situation and see if it’s a deficit or a benefit. Work to put yourself in a situation where you can benefit. All the best. Peace and blessings.