Will a Federal Reserve Interest Rate Hike Mean Higher Savings Account Interest?
The Federal Reserve is widely expected to raise the benchmark federal funds rate target range by 0.25% when it announces its decision on Wednesday. So far during this rate hike cycle, however, this hasn't translated to more money for savings account customers. Will this time be different?
The short answer is "sort of." While savings account interest rates tend to increase in response to Federal Reserve monetary policy, the two aren't directly related.
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Source: Fool.com