• May 20, 2022
  • Posted by General Electric Credit Union

How You Can Take Advantage of Rising Interest Rates

The Federal Reserve – also referred to as the Fed – is the central bank of the United States. You may have heard their name in the news lately because they are tasked with addressing anything that threatens the U.S. economy’s ability to function as smoothly as possible. Sometimes, when inflation gets out of hand, this means raising interest rates. The Fed is expected to raise interest rates six more times in 2022.1 While this will make borrowing more expensive, it also creates an opportunity to earn on certain deposit products. 

You’ve got options 

1. Certificates and bump certificates

Growing your money with a certificate2 is simple and straight forward. You open one with an initial deposit, let it accrue interest for a set period, then – once it reaches its maturity date – you have the option to withdrawal the funds or use them to open another certificate. You’ll know exactly how much you’ll earn from the get-go because you lock in your rate for a set period.  

Tip: Opt for a Bump Certificate3 through General Electric Credit Union (GECU) to ensure you never miss out on a great rate. While you lock in a rate at opening for a traditional certificate, a Bump Certificate gives you the option to “bump” your rate once a year, every year – increasing your earning potential over the life of the certificate. Open yours today with as little as $500!

Keep in mind that funds kept in a traditional or bump certificate aren’t liquid. While you have the option to withdraw them early, doing so comes with fees. It’s best to wait until a certificate reaches its maturity date. For this reason, certificates are an appropriate choice for any funds you won’t need immediately. 

2. Interest-earning saving accounts

If you want or need more access to your funds, an interest-earning savings account may be the best choice. You’ll still earn interest on your balance, but you can transfer funds out of the account without triggering fees. 
Some interest-earning accounts offer tiers, allowing you to earn more in interest as your balance grows. This makes it advantageous to make these accounts your primary savings account. 

Tip: Start earning on as little as $100 when you open a Thrive Money Market4 account with GECU. In addition to interest earned, you’ll also enjoy no monthly maintenance fees and free access to nearly 100,000 ATMs nationwide.5 

3. Money market Individual Retirement Accounts (IRA)

An IRA Money Market,6 or IRA high-yield savings account, combines the tax advantages of an IRA with the stability and liquidity of a money market account. You’re also guaranteed a return in addition to competitive earnings, making it a fantastic option for risk-averse savers.   

GECU understands periods of inflation can be hard on our members. Higher prices at the pump and in the grocery store aisle can throw budgets off track. That’s why we offer products and services aimed at helping you grow your money and making your finances easier to manage. From Bump Certificates to interest-earning savings accounts and IRA money markets, we have the solutions you need to take advantage of this rising-rate environment and make it work for you. Not a member yet? Confirm your eligibility and apply online in minutes.  

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