Hey Reader,

It’s getting hot in here! 🌶️

And, no, I’m not talking about the temperature of your phone after binging TikTok for 20 minutes.

I’m talking about interest rates…

For the first time in 3 years, the Fed just raised them.

So if you’re feeling a little anxious, you’re not alone.

Cause depending on a few things, it’s either gonna be good news or bad news for you.

Today I wanted to share 3 things you need to know about what just happened and how it might impact you.

1. Why did the Fed raise rates?

TLDR: Inflation is still higher than the Fed wants.

Consumer prices increased 3.4% over the past year. The Fed wants that number closer to 2%.

Think of the Fed raising rates like pressing the brakes on prices.

1. Increasing interest rates makes borrowing $$$ more expensive
2. People and businesses then spend less $$$
3. That cools demand and eventually should help prices rise more slowly.

But here's the thing...

A rate increase takes time to work its way through the economy so it might be a while before we get any kind of relief.

With that said, some things may get more expensive much sooner.

2. What could become more expensive?

Basically anything where you gotta borrow money:

• Credit card interest
• Home equity lines of credit
• New car loans
• New mortgage loans

However, if you’re already locked in with a fixed-rate mortgage or car loan, your payments aren’t gonna change.

3. How can you benefit?

This is where things get interesting for savers.

When rates go up, certain banks will likely start paying more on High-Yield Savings Accounts (HYSAs).

But don't assume your current bank will do this automatically cause many big traditional banks still pay next to nothing.

cough... Chase, Bank of America, Wells Fargo... cough

Just look at the difference:

• $10,000 earning 0.01% makes about $1 per year
• $10,000 earning 4% makes about $400 per year

That's $399 more that you get paid on the exact same amount of savings.

And all you did was move your money from location A to location B.

So what should you do?

If your emergency fund or short-term savings is sitting in a big traditional bank, move it into a HYSA.

If you don’t, you could be losing out on a lot of money.

The good news is it only takes a few minutes to do.

​Here’s a list of my favorite HYSAs to compare.​

You already did the hard part by saving the money. Now make sure your bank is actually paying you for keeping it there.

Let's build,

Vincent