Knowing how to manage your interest rates can make your life a whole lot less complicated. We know it’s easier said than done, but with a partner like FitnessBank, you can walk right out of those stresses and right into a better understanding. The first step is to list all of the factors influencing interest rates today.
Be sure to check out our previous blog on interest rates, located here. We go into detail regarding the differences between compound and interest rates, how rates are delineated, and more. We keep our resources sections packed full of valuable information to make your banking and overall financial experience a positive one.
How The Market Determines Interest Rates
The first of our factors influencing interest rates is the state of the economy. What’s in supply versus what consumers are looking for has always been a great contributing factor in this way. Check out the following blurb from Investopedia on the matter:
“An increase in the demand for money or credit will raise interest rates, while a decrease in the demand for credit will decrease them. Conversely, an increase in the supply of credit will reduce interest rates while a decrease in the supply of credit will increase them.
Inflation is often met with ire from many who are looking to ease financial burdens. But, it’s a constant in our economic climate, and the more prepared you are to take it on, the better off you’ll be when you encounter it.
The math here is fairly simple. The more inflation is on the uptick, the more likely you are to see interest rates follow suit. Likewise, if you’re seeing inflation on the downturn, interest rates will begin to look more attractive.
The country’s executive council can also be a major contributing factor to its own inflation rate. Rates can be directly impacted by the legislation they pass. These changes will be made public, so it’s good to stay abreast of them so as to remain prepared.
At FitnessBank, we thought of a different way to influence your interest rates; one that puts the power back in your hands. Or rather, your legs. Now, tracking your steps can lead you to an overall lower interest rate when you open an account with us. Contact us today to learn more.