So the big news taking over national headlines for the moment is the Federal Reserve’s decision to increase interest rates. The question a lot of people are asking is how it affects them? Well if you currently have a loan where the interest rate is adjustable i.e. adjustable rate mortgage or student loan, then you’ll probably start to see your interest rate adjust a bit, which means your payment might go up. This also goes for credit cards with variable interest rates as well. If you have a fixed interest rate on your loan then your rate will stay the same, as you locked in that interest rate when you first got the loan.

On the flip side, if you’re looking to open a new savings account or currently have one then this news could mean that you’ll earn a slightly higher interest rate on your account. Unfortunately, that is less likely to happen for now. Banks are much more eager to make you pay a higher rate on a loan than they are to pay you a higher rate on your savings or checking accounts that earn you interest.

For the most part, this rate hike will barely be noticeable in the short term because the increase was fairly small. The Fed is expected to  do several of these small interest rate hikes next year and if they do you’ll start to notice around late 2016-early 2017. With that being said, if you’re considering getting a house/condo/coop you might want to start looking now and try to lock in a low rate. There is no guarantee that rates will rise next year but for now all signs point to it. Just a little something to keep in the back of your mind.