Rising mortgage interest rates are making headlines this year. However, higher interest rates are great news for savings. If you have cash to invest, now is a good time to take advantage of the higher rates with current savings specials.
What Interest Hikes Mean for You
In March 2022, the Federal Reserve raised its target federal funds rate by .25%, the first interest rate hike in more than three years. Since then, the Fed has continued to raise rates by an additional 1.25%, with more increases expected later this year.
For borrowers, the rate hikes translate to higher interest rates on credit cards, home and auto loans, and home equity lines of credit. The silver lining to these rate hikes is there are new opportunities to take advantage of higher returns on your savings.
A Great Time to Save
“We are currently offering money market and CD specials that are reflective of the rising interest rate environment which is much higher today than in previous years,” notes Enrico Sio, District Branch Manager at First Fed. “These promotions offer attractive rates for shorter and longer-term investments. It’s an excellent time to give your savings a boost.”
For those with higher balances, money markets allow people to save at a higher rate than a savings account while offering the flexibility to withdraw as needed. A certificate of deposit (CD) is a particular type of deposit account that earns a fixed interest rate for a fixed term. Because that lump sum of money stays in the account for a set time period, banks can offer much higher interest rates than they do for standard interest-bearing savings accounts.
First Fed is offering a money market special for new accounts with a minimum deposit of $10,000 of “new money” not held previously on deposit at First Fed within the last 30 days. Accounts will convert to Spruce Money Market on January 2, 2023.
The First Fed CD special for 13 months offers a rate of 1.50% APY* is available with a minimum deposit of $10,000 of “new money” not held previously on deposit at First Fed within the last 30 days.
Coverage for Future Changes
Because it is likely that rates will continue to increase, there is an advantage to savings specials that take into account potential rate changes and pass the benefit on to the customer.
The First Fed CD special for 30 months offers a rate of 2.00% APY* with a minimum deposit of $25,000 of new money. Plus, the account holder can “bump” up their interest rate once during the 30-month term if rates go higher.
“The ability to bump your rate lets you feel confident locking into the longer time range, because you will be able to take advantage of any significant rate increase,” explains Sio.
The new CD and Money Market specials must be opened up in a First Fed branch. Sio and his team members are happy to help you navigate your options to take advantage of the best return on investments.
Learn more about First Fed CD specials at https://www.ourfirstfed.com/personal/savings/cd-rates
* APY is Annual Percentage Yield.
First Fed is a member FDIC and equal housing lender.