🔒 How will the Fed rate hike affect your loans and savings?

The Federal Reserve raised its benchmark rate by 0.25 percentage points to battle inflation. This shift ripples through your finances—increasing the yield on your savings but also driving up the cost of variable-rate debt like credit cards. Use this calculator to see how the hike impacts your bottom line over the next year.

Enter your current cash savings and variable-rate debt. Fixed-rate loans like most mortgages and auto loans aren't affected by this specific hike, so leave them out.

A 0.25% hike means you earn an extra $25 for every $10,000 in savings, but pay an extra $25 for every $10,000 in variable debt. Here is the math for your specific balances. (Note: This assumes your balances remain constant over the next year and calculates simple annual interest.)

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For further related reading, check out:

• Federal Reserve raises interest rates for the first time since 2023