For the second time this year, the Federal Reserve on Wednesday decided to lower its key interest rate by a quarter of a percentage point.
Federal Reserve Chair Jerome Powell noted during a briefing with reporters on Wednesday that it is not a foregone conclusion that the central bank will opt for third rate cut this year at its upcoming December meeting.
For now, though, the Fed’s move on Wednesday will affect various consumer savings and lending rates throughout the economy.
How? In brief, it may make it a little harder — but still possible — to find attractive, inflation-beating yields for your savings if you comparison shop. And on your debts, the Fed’s moves may save you some money but not nearly as much as your taking advantage of other options. More on all that below.
Best bets for savings
Even if the rates available today move down a bit given the Fed’s latest move, there are still plenty of low-risk options that let you grow your savings and protect your purchasing power.
Online high-yield savings accounts: Online high-yield savings accounts at many small FDIC-insured banks are still offering yields north of 4%, far higher than the 0.1% you might earn on a traditional bank savings account. Why? Because the online players are competing to attract deposits.
In fact, while many bank account rates
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