Millennial Money: As Fed rates rise, save at a credit union
As the Federal Reserve continues to increase interest rates, borrowers may find that they’re paying more for their debts or perhaps missing out on opportunities to boost their savings with better rates
In the past year, the Federal Reserve has employed several interest rate hikes in an effort to stabilize the U.S. economy. Depending on your situation and financial institution, your debt may have gotten more expensive or your savings might have grown. As rates continue to change, it’s worth exploring whether you’re still getting the best offer around.
Compared with big banks, a credit union can offer decent rates for stashing your cash or borrowing money, especially during these economic times.
“For folks who are looking for loans, they can often find a credit union with lower rates because credit unions are willing to spend some of their would-be profits on lower rates,” says Andrew Leventis, chief economist at the National Credit Union Administration, or NCUA. “ That’s one way, traditionally, credit unions have helped out their members, particularly in times when you have rising rates and there’s more of an urgency to getting the best deal.”
Here’s what you should know about these not-for-profit cooperative financial institutions and their potential to offer big savings.
