Money Matters: Financial Rates and Inflation

COLUMBIA, S.C. (WIS) - We all see financial rates rising with inflation, but is there any good news that goes along with that?

With costs of goods and interest rates rising, it can seem all bad, but Josh Bradley with Capital City Financial says that these rising costs mean rates are going up on saving as well. Saver’s money markets and CD rates are all going up.

What are key current rates and how do we keep track?

A lot of people gave up on shopping around for rates but shopping for rates is very important. The best money market rates are about a half to 1 percent and CD rates can go from 2 all the way up to 3 and a half.

The key is to be able to see all those rates so you can get the best rate possible.

How about interest-based investments?

A lot of people have seen their 401k’s and IRAs go down in the prior months and they just think it’s because of the market. In reality, it’s their bond investments as well.

Most traditional bond funds are down upwards of 10 percent this year because of rising rates. The flip side is that they are usually only paying you 2 percent interest and if you could transition your investments from a bond fund. That could make a big difference for most retirees or savers.

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