With the Fed announcing this month that it's raising its rate above zero for the first time in nearly a decade, what should consumers expect?
The Chicago Tribune's Carolyn Bigda recently tackled the question with an eye out for Millennials' pocket books. Here are the likely consequences:
- Credit card rates are likely to rise quickly. They usually track the Fed closely.
- Mortgage and other loan rates will climb: banks have been earning historically low interest on their loan products. Expect them to climb.
- Savings deposit rates will remain low: but consider moving the products to online banks that offer a better return than traditional banks.
The good news, however, is that the rate increase, at a quarter of a point, is so small that it will likely translate into a very small increase.
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