Rising interest rates are making headlines this year. While the increases are intended to give borrowers pause, higher interest rates are great news for savings. If you have cash to invest, now is a good time to take advantage of the higher rates with current savings specials.

What Interest Hikes Mean for You

In March 2022, the Federal Reserve raised its target federal funds rate by .25 percentage points, the first interest rate hike in more than three years. Since 2022 began, the Fed has now raised rates a total of 3 points. September’s rate hike was the fifth rate hike this year.

For borrowers, the rate hikes translate to higher interest rates on credit cards, home and auto loans, and home equity lines of credit. The silver lining to these rate hikes is there are new opportunities to take advantage of higher returns on your savings.

A Great Time to Save

“We are currently offering money market and CD specials so our customers can take advantage of the interest rates which are much higher today than in previous years,” notes Nicole Zhao, Bellevue Branch Manager at First Fed. “These promotions offer attractive rates for both shorter and longer-term savings plans. It’s an excellent time to give your savings a boost.”

For those with higher balances, money markets allow people to save at a higher rate than a savings account while offering the flexibility to withdraw as needed. A certificate of deposit (CD) is a particular type of deposit account that earns a fixed interest rate for a fixed term. Because that lump sum of money stays in the account for a set time period, banks can offer much higher interest rates than they do for standard interest-bearing savings accounts.

First Fed is offering a money market special for new accounts with a minimum deposit of $10,000 of “new money” not held previously on deposit at First Fed within the last 30 days. Accounts will convert to Spruce Money Market on January 2, 2023.

The First Fed 13-month CD special offers a rate of 2.75% APY* is available with a minimum deposit of $10,000 of “new money” not held previously on deposit at First Fed within the last 30 days.

To take advantage of the highest interest rate currently available, First Fed also has a 25-month CD special at a rate of 3.25% APY*, available with a minimum $25,000 deposit of new money.

Coverage for Future Changes

Because it is likely that rates will continue to increase, there is an advantage to savings specials that take into account potential rate changes and pass the benefit on to the customer.

The First Fed 30-month CD special offers a rate of 2.50% APY* with a minimum deposit of $25,000 of new money. Plus the account holder can “bump” their interest rate once during the 30-month term if it goes higher.

“It’s a great perk to be able to bump your rate down the road. You can feel confident locking into the longer time range, because you will be able to take advantage of any significant rate increase,” explains Zhao.

The new CD and Money Market specials must be opened in a First Fed branch. Zhao and her team members are happy to help you navigate your options to take advantage of the best return on investments.

Learn more about First Fed CD specials at  https://www.ourfirstfed.com/personal/savings/cd-rates

* APY is Annual Percentage Yield. First Fed is a member FDIC and equal housing lender.