Protecting your finances after the Fed interest rate hike

The Federal Reserve has once again brandished its most high-profile weapon to fight the highest inflation in 40 years: Higher interest rates. While it’s not unexpected, we’ve all become used to low interest rates for everything from buying a home to auto loans. Here are a few ways you can help protect your finances before rates increase further.

Special ‘Step-Up’ Certificates (CDs)

You may have read our previous post about why Certificates are gaining so much attention right now. Certificates (also known as CDs) guarantee a rate of return and a fixed interest rate, which is a great security blanket in these volatile times. The key is to secure a short-term Certificate at the best rate — but also with some flexibility for when interest rates change once again. Benchmark Federal Credit Union is providing a 60 Month “Step-Up” Certificate where you can lock in a 2.48% APY, then increase it once anytime during the 60-month term of the Certificate. In addition, the “step-up” won’t extend the term of the Certificate. Be aware that when you invest in a Certificate, you won’t be able to access your funds until the Certificate matures. But with a “Step-Up” Certificate, you’re not only locking in a rate; you’re also giving yourself the option for higher rate of return at a later date.

Fixed home equity loan

If you’re struggling with high-rate credit card debt or another adjustable-rate loan, your interest rates will go up with the latest Fed rate hike. You may want to pay off that debt with a fixedrate home equity loan now, before interest rates go up again. Home equity loan rates are lower than credit cards and other unsecured loans because your property serves as collateral for the loan. This means there is less risk to the lender. A home equity loan will also enable you to consolidate multiple debt obligations into one convenient monthly payment.

Benchmark Federal Credit Union is offering our Fixed Home Equity Loan at .99% APR for 60 months for up to 80 percent Loan-to-Value (LTV). Longer terms at discounted rates are available. Home equity loans can be used for anything you need, including home improvement projects & repairs, education expenses, debt consolidation, paying medical bills, weddings & other celebrations, funding a vacation, making a major purchase, starting a business and emergency expenses.

Rebecca Worthington is the Vice President of Community Relations at Benchmark Federal Credit Union. The only federal credit union to exclusively serve Chester County, Benchmark FCU has been serving the community for more than 80 years and is known for providing extraordinary service. To learn more about the products and services available at Benchmark FCU, visit our website at BenchmarkFCU.org. Anyone who lives, works, worships, or attends school in Chester County, PA is eligible to join Benchmark Federal Credit Union.

Worthington