iCrowd Newswire
24 May 2023, 01:18 GMT+10
As interest rates rise in an attempt to cool inflation, many wonder if there is a way to benefit financially during this time of economic uncertainty. Fortunately, there are several ways in which consumers can make the most of high interest rates. Keep reading to learn more about interest and four ways to make the most of high interest rates.
Before making any investment or financial commitment, consumers should understand interest basics and the difference between APR vs. APY. Interest is the price of borrowing money, and all interest is expressed in terms of Annual Percentage Rate (APR) or Annual Percentage Yield (APY). APR represents the amount of interest paid according to a yearly rate, while APY considers compounding-the process by which accrued interest adds to the principal, generating even more interest. So, in short, APR is interest that is added to a debt a consumer holds, such as a credit card or loan, while APY is interest a consumer gains that adds to their earnings.
The Federal Reserve raises interest rates to moderate the amount of cash moving through the economy to drive down aggregate demand and reduce inflation. Inflation is the increase in prices for goods and services over a period of time. There can be several causes of inflation, but it is generally triggered when demand is high, and supply is low-a situation experienced worldwide as the Covid-19 pandemic closed borders and ports and slowed manufacturer production.
Due to this, the Federal Reserve is enacting interest rate hikes in a bid to reduce inflationary pressure and keep the U.S. economy stable.
Consumers can make the most of high interest rates in a few ways to increase their savings and possibly build wealth over time. By understanding the difference between APR and APY, as well as taking advantage of options such as CDs, bonds, high-yield savings accounts, and credit card rewards, consumers can make more informed financial decisions that could yield greater returns in the future.
See Campaign: https://www.iquanti.com
Name: Michael BertiniEmail: michael.bertini@iquanti.comJob Title: Consultant
Tags:PR-Wirein, CE, Go Media, IPS, Reportedtimes, Google News, ReleaseLive, Extended Distribution, iCN Internal Distribution, EnglishGet a daily dose of Business Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Business Sun.
More InformationNEW YORK, New York - U.S. and global stocks tumbled Wednesday as lawmakers continued to navigate their way through Congress ...
NEW YORK, New York - Republicans were in uproar Tuesday over the deal hammered out by President Joe Biden and ...
FRANKFURT, Germany - With U.S. and UK. markets closed for public holidays, it was left to European and broader global ...
New Delhi [India], June 1 (ANI): The government has so far procured 262 lakh tonne of wheat. It has already ...
The Tesla CEO has seen his wealth grow by more than $50 billion this year amid a surge in the ...
PRNewswireMumbai (Maharashtra) [India], June 1: The Indian financial sector witnessed a momentous deal in July 2021 when Sumitomo Mitsui Financial ...
PRNewswireNew Delhi [India], June 1: In India, the pervasive influence of RFID technology is causing a profound shift in industries ...
Washington - The semiconductor trade war between Washington and Beijing may ensnare Seoul as South Korea must decide between backing ...
The Tesla CEO has seen his wealth grow by more than $50 billion this year amid a surge in the ...
Washington [US], June 1 (ANI): Ahead of Prime Minister Narendra Modi's US visit, the US-India Business Council (USIBC) president Atul ...
LOS ANGELES, May 31 (Xinhua) -- U.S. private space company SpaceX launched 52 more Starlink satellites into orbit early Wednesday. ...
Washington - The director of the leading U.S. cybersecurity agency has a message for scientists and top technology company officials ...