Interest Rates are Rising Again, Now What?

increasing stacks of coins on a wooden table with blue arrow pointing up to show that interest rate % is rising

Interest rates have a significant impact on your buying power and your debt.  What should you do in a market where interest rates are rising but at a slower rate?

With the motto “buy low, sell high” in mind, we all want to take advantage of the peak lows and highs of interest rates to maximize our profits.  But the reality is, in today’s market, nothing is certain.  There is no “perfect” time to lock into a loan rate or invest your money when interest rates are climbing, albeit at a slower rate.

Inflation

With interest rates rising at a slower pace, you need to be ready to lock in loan rates on the borrowing side and take advantage of financial vehicles that give you a higher rate of return on the investment side.  After two years of uncertainty due to the pandemic, the world is now open to enjoy again.  But, because of inflation, the cost of enjoying the world is significantly more expensive than it was pre-pandemic.

Inflation in the United States hit a high in September of 2022.  Slowly, by increasing interest rates, the Federal Government is getting inflation under control.  Inflation has been steadily declining in 2023, normalizing and stabilizing the economic climate in the US.  As a result, people are making up for lost vacations and pleasure spending.  But everyone should prepare and manage their financial expectations as the economy can have sharp and short-term adjustments and long-term corrections.

Extra Cash

In December, we published a blog about reaching your financial goals while planning for the unexpected.  No matter how good the economic forecast may be, you should always have an emergency fund for unforeseen expenses, including inflation!  Take advantage of investments that give you a substantial rate of return while not tying up your money for long periods.   Short-term, high-yield Share Certificates let you attain financial growth and financial freedom at the same time.

Historically short-term certificate shares meant settling for a lower interest rate compared to traditional certificate shares of 12 mos. or greater.  But today, short-term certificate shares often provide greater rates of return and liquidity than their longer-term equivalents.  Continue or jump-start your financial growth with higher-yielding shorter-term certificates!

Please visit one of our branches or speak with one of our representatives to learn about Welcome Federal Credit Union’s (WFCU) high-yielding certificate shares.  You’re always welcome at WFCU!

Welcome Federal Credit Union will be closed on Monday, February 19 in observance of President's Day.

Now is the time to get the best returns on your cash with higher interest rates on your Certificate and Money Market accounts!

Please be advised that the Henderson Branch will be closed on Friday, March 29 in observance of Good Friday.

Now is the time to get the best returns on your cash with higher interest rates on your Certificate and Money Market accounts!

Welcome Federal Credit Union will be closed on Monday, May 27 in observance of Memorial Day.

Now is the time to get the best returns on your cash with higher interest rates on your Certificate and Money Market accounts!

Welcome Federal Credit Union will be closed on Wednesday, June 19 in observance of Juneteenth.

Now is the time to get the best returns on your cash with higher interest rates on your Certificate & Money Market accounts!   

Please be advised of our holiday hours for Independence Day: all WFCU branches will be closed on Thursday, July 4. The Zebulon-GSK branch will be closed July 1 - July 5.

Now is the time to get the best returns on your cash with higher interest rates on your Certificate & Money Market accounts!   

Welcome Federal Credit Union will be closed on Monday, September 2 in observance of Labor Day.

Now is the time to get the best returns on your cash with higher interest rates on your Certificate & Money Market accounts!   

Welcome Federal Credit Union will be closed on Monday, October 14 in observance of Columbus Day. 

Now is the time to get the best returns on your cash with higher interest rates on your Certificate and Money Market accounts!

Welcome Federal Credit Union will be closed on Monday, November 11 in observance of Veterans Day.

Now is the time to get the best returns on your cash with higher interest rates on your Certificate & Money Market accounts!   

Welcome Federal Credit Union will be closed for the Thanksgiving Holiday on November 28 & 29, 2024.

Now is the time to get the best returns on your cash with higher interest rates on your Certificate & Money Market accounts!   

As we close out 2024 and think forward to 2025, WFCU would like to wish all of our members and their families a wonderful holiday season and a prosperous New Year! Please be advised of our holiday schedule.