TULSA, Okla. — If you have credit cards, loans, and a savings account, the recent cut by the Federal Reserve on short-term interest rates likely impacts you.
Consumer Reports breaks down the changes you might see on your next statement.
First up – credit cards. If you carry a balance, expect a slightly lower interest rate.
If you have the average debt load, which is more than six thousand dollars, if you're making minimum payments, that monthly minimum payment changes by a dollar a month.
Consumer Reports says you may save money on interest by working with a credit union, bank, or a finance counselor to create a plan and pay off debt with a personal loan.
If a cut-rate balance transfer offer tempts you, keep a close eye on fees and what your interest rate jumps to when the introductory period ends.
Federal student loans, car loans, personal loans, and most mortgages have fixed interest rates–you’re locked in, and those won’t change unless you refinance.
If you plan to take out a new loan, the rate cut could help new borrowers. If you’re shopping for a car, expect a marginally lower rate.
After a fed cut, the interest rate on your savings account will usually dip too, but that’s not always the case because of stiff competition among banks.
The top savings rates, often from online banks, are about 4.3%.
Bottom line for borrowers and savers: Do a little homework and shop around. Even a small rate change can make a big difference over time.
Stay in touch with us anytime, anywhere --
- Download our free app for Apple, Android and Kindle devices.
- Sign up for daily newsletters emailed to you
- Like us on Facebook
- Follow us on Instagram
- Watch LIVE 24/7 on YouTube
