Interest rates on high-yield savings accounts have been high. But could they go higher? Here's what some experts think.
"Banks will make as much as they can off consumers who fail to act, but eventually there won't be enough of the unaware for the banks and they will start losing deposits, so they will have to get competitive," says Tom Siomades, CFA, chief investment officer at AE Wealth Management.
Similarly, Brian Kuhn, CFP, SVP financial advisor at Wealth Enhancement Group, agrees that rates probably won't move much in either direction over the next few months. Keep in mind, however, that not everyone thinks a recession will occur. Many still predict a soft landing, where the economy slows down but does not turn negative as inflation gets under control.
"An advantage is that some of these products will lock in a rate for a period of months or years, compared to a savings account where the rate could easily go back down at the bank's discretion," says Nick Bormann, CFP, investment advisor at Bormann Wealth Management."They typically pay a higher rate than a traditional savings account, and they lock your money up so you are not tempted to raid your savings," says Siomades.
"As high as savings account rates have gotten, paying 20% or more on credit card debt will be higher," says Kuhn.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Report: Lakers star LeBron James interested in playing for Team USA for 2024 Paris OlympicsJames interest in the 2024 Olympics preceded Team USA’s losses in fourth-place finish in this summer’s World Cup.
Read more »
2024 Ford F-150 Refresh Spied before September 12 RevealHere's an undisguised look at the updated gas-fed F-150, as Ford CEO Jim Farley said the company will prioritize the truck's hybrid powertrain.
Read more »
'Early 2024' launch tipped for big-battery OnePlus 12R powerhouse with blazing fast chargingLeaked in all its glory a couple of months back, the OnePlus 12R has its key specs and features reiterated in a credible new rumor that adds an 'early 2024' launch prediction to the equation as well.
Read more »
Armenia vs. Croatia FREE LIVE STREAM (9/11/23): Watch 2024 UEFA Euro Qualifying onlineArmenia faces Croatia in the 2024 UEFA Euro Qualifying on Monday, September 11, 2023 (9/11/23) at Vazgen Sargsyan Republican Stadium in Yerevan, Armenia.
Read more »