You can actually get decent interest rates on money market accounts now – at least from online banks.
(Check rates on Bankrate.com here).
Sure, higher rates mean you’ll pay more interest on credit cards balances and adjustable rate loans.
But look at the flip side. Higher rates benefit savers and investors, who earn more on their deposits, CDs and bond investments.
And guess what? It turns out that, for the economy as a whole, the benefits of higher rates outweigh the costs by a factor of roughly 4 to 1.
So if higher rates cost you a dollar in higher interest expense, your neighbors are raking in an extra $4 on deposits and investments.
According to researchers, that now makes higher rates a net benefit to consumers.