Do You Have an Ally?

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When the Fed raises interest rates, of course all of your credit will have higher rates. It mostly affects credit cards since most signature and personal loans have a generally fixed rate when you take them on. But, there is a flip-side benefit to this as well. Savings accounts generally pay higher rates of interest, as well as certificates of deposit accounts and money market accounts. I mention this because when I first opened a savings account at Ally Bank, they paid an interest rate of 2%. Until recently, that rate was all the way down to about 0.50%. But the Fed has been raising the Fed rate of course, and so, the interest rate has also increased on my savings account incrementally. My savings account at Ally Bank now earns 3.3% and I can get a high yield CD at 4.15%. Granted, I am still not remotely beating inflation. But it's my savings account. It's desirable to earn some money on it, but its main purpose is direct access to cash not tied to investments for things like emergencies... Or buying more stock in the stock market. If I can earn more on that money while it sits there waiting for a use, I will gladly take that all day long. Plus, it is an online account, and so getting money bounced back and forth between it and my checking is account is easy peasy lemon squeezy.