Take a look at what 0% interest rates mean

Take a look at what 0% interest rates mean

What is the meaning of 0% interest rates? In this article, you will find out all the details you need to know. Keep reading to find out all the important information!

What is the meaning of 0% interest rates? In this article, you will find out all the details you need to know. Keep reading to find out all the important information!

The Federal Reserve (the Fed) cut interest rates nearly to 0% on March 15. By cutting rates so low, the Fed hopes that businesses will be better able to manage through this period and, possibly, limit the number of layoffs, even as the country and the world grapple with serious health challenges.

The Federal Reserve (the Fed) cut interest rates nearly to 0% on March 15

For individuals and families, rates this low can present some challenges. For instance, lower rates can make it harder to save for retirement. Yet low rates may also help consumers by lowering borrowing costs on everything from mortgages to student loans to credit card debt. Here’s what you need to know about how extremely low-interest rates may affect your personal finances.

Mortgage rates tend to be influenced by the Fed rate, so they’re likely headed lower. Depending on your situation, refinancing your mortgage could result in lower monthly payments. But it’s important to note that refinancing comes with costs, so don’t rush into anything. 

People saving and investing in children’s education are likely concerned about how volatility in the markets will affect their ability to pay tuition. These concerns are well-founded, especially if a child is nearing college age. Still, low rates could provide some relief for families planning to offset education costs with student loans.

People saving and investing in children’s education are likely concerned about how volatility in the markets will affect their ability to pay tuition.

The amount of interest you pay on a credit card typically starts with an index such as the U.S. Prime Rate. Banks then add a margin to determine your annual percentage rate (APR). Because most APRs are variable you may see lower rates for your existing credit cards.

Now could also be a time to consider consolidating debts from several cards on a single card with the lowest rate. But keep in mind that even with lower rates, debt from credit card interest can add up. 

Related Articles

More News

More News