HIGHER INTEREST RATES – What does it mean and what’s in it for me?
The Federal Reserve (known informally as the “Fed”) is the central bank of the United States. The Fed was created by Congress in 1913 and functions to maximize employment as well as providing a safer and more stable monetary and financial system.
After seven years of flat rates near zero due to the economic troubles of 2008, the Fed has raised interest rates five times since the end of 2016, reaching a current rate of 2.0%. This is consistent with a stronger economy and the Fed’s desire to manage inflation and full employment. Short-term market rates (such as the two-year rate) have increased in lockstep with the Fed, while long-term rates (such as the 10- or 30-year rate) have risen a bit less, as some investors still worry about a recession and lower rates. What does this mean for Amplify members?
The answer is GOOD NEWS for our depositors!
Amplify has increased deposit rates along with the Fed since 2016 and is even offering new high-yield products. For example, we recently introduced a new high-yield savings product yielding a local market leading rate of 1.55%. We also bumped our money market rates up, with a high rate of 1.20% available. And, we raised CD rates across the spectrum as well, including 1.60% on a 30-month term, 2.50% on a 5-year term, and over 3.0% on a 7-year term.
So whether you are interested in building long-term savings, staying flexible with money market accounts, or accumulating savings for a specific period of time, we’ve got you covered with leading local rates across many products. Amplify has been around over 50 years, has a strong balance sheet with over $900M in assets, and is a top-rated financial institution as rated online by Bankrate and Bauer. And as always, your deposits are 100% insured by the NCUA up to $250,000. Contact us today to discuss your savings goals and take advantage of our great rates on deposit products.