On December 16, 2015, the Federal Reserve increased interest rates for the first time in more than a decade. While higher interest rates will make things tougher for some, others will benefit. Here are 5 kinds of people who benefit from higher interest rates:
The least-risky types of accounts — bank savings, credit union savings, and money market, to name a few — offer better yields when interest rates rise.
When interest rates increase, the dollar’s value does too. So those vacationing abroad or buying foreign goods may get a boost in spending power by using dollars.
Those who depend on investment interest income for living expenses could see a little bit of relief if their interest rate rises and their investments increase in value.
Higher interest rates mean lenders may find more reason to lend. So it could be a little easier than before for borrowers-to-be to become borrowers. But be careful — interest rates on those loans may rise too.
If you’ve been ignoring your credit, a rate hike may be just the spark you need to get in the know. Fortunately, TransUnion® makes it easy to stay up on your credit with: