Change is happening in 2017. Not only do Americans have a new President, but the economy seems to be evolving beyond the “new normal” of super-low interest rates created in in the wake of the financial crisis.
Think about it: we’ve now gotten used to having 4% mortgages and super cheap car loans. Banks have gotten used to being able to access funds nearly interest-free.
All of this seems to be changing – and a growing number of Americans are getting worried.
According to a recent survey from Bankrate, 49% of Americans say they are concerned about rising interest rates in 2017.
“Fears have grown since last year when 41% of respondents noted their concern regarding increasing rates. The most common reason for worry among respondents was the effect of rising interest rates on the stock market (21%), up from 16% in 2016.”
These are valid concerns, but they need to be put in perspective.
After all, interest rate increases are being driven by a healthier U.S. economy that now enjoys a pre-recession unemployment rate and rising wages.
Also, this rising rate environment should translate into a more favorable climate for savers.
This is not to say all will be peaches and sunshine; higher interest rates could certainly have some negative effects for both investors and consumers.
ProMedica Federal Credit Union is doing everything it can to keep interest rates ultra-competitive. As a not-for-profit financial cooperative, a portion of our profits are returned back to our members in the form of lower rates on loans and higher rates on deposits. What can ProMedica FCU do to assist with your financial health? Call, email, or stop in today!