Click to view our Accessibility Statement or contact us with accessibility-related questions

5 kinds of people who benefit from higher interest rates

Share This Page

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:

1. Savers seeking safety

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.

2. Vacationers abroad

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.

3. Retirees

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.

4. Loan seekers

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.

5. Credit ignorers
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:

  • UNLIMITED TU score & report refreshes
  • 3-Bureau monitoring & alerts
  • 24/7, on-the-go access with our app

Take the next step toward financial health

Advertiser Disclosure: TransUnion Interactive may have a financial relationship with one or more of the institutions whose advertisements are being displayed on this site. In the event you enter into a product or service relationship with any such institution through the links provided on the site, TransUnion Interactive may be compensated by such institution. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TransUnion Interactive does not include all credit card companies or all available credit card offers.

What You Need to Know:

There are various types of credit scores, and lenders use a variety of different types of credit scores to make lending decisions. The credit score you receive is based on the VantageScore 3.0 model and may not be the credit score model used by your lender.

*Subscription price is $24.95 per month (plus tax where applicable).