Rates of interest: What to do together with your cash now that the Fed raised charges for the ninth time

Interest rates: What to do with your money now that the Fed raised rates for the ninth time


Editor’s Note: This is an updated version of a story that originally ran on February 1, 2023.

New York

After two weeks of banking turmoil, the Federal Reserve on Wednesday continued its bid to beat down inflation by raising its key interest rate again, the ninth such hike over the past year.

That increase — which comes after US regulators undertook a number of confidence-boosting efforts to backstop banks and ensure they have enough cash to stay afloat — will have an effect on consumers’ savings, loans, credit cards and investments.

“Returns on savings accounts and CDs are the best in 15 years,” said Greg McBride, chief financial analyst for Bankrate.com. “But the average credit card rate is now at a record high above 20%, auto loan rates are at a 12-year high and mortgage rates are still north of 6.5%. It is as important as ever for savers and borrowers to…