There’s a flip side to rising interest rates you may not have heard of

We hear a lot about rising interest rates making it more expensive for people to get a loan for a home or a vehicle.

But rising interest rates have a downside: people have the potential to earn more on their savings.

Jeremy Blair, vice president of finance for Mountain America Credit Union, says rates and products will be different for each financial institution, but they’re offering a limited-time offer for 2- to 5-year certificate accounts earning an annual return. as a percentage of 2.75%, which is the highest rate we’ve offered in years. Which can be opened in branch or online at

When it comes to whether a certificate or a savings account is right for you, Jeremy explained that if you use the money you invest regularly, a savings account may be better.

But, if you have enough liquid savings and are looking to earn a bit more to offset inflation, a certificate account is another option, Jeremy says.

Jeremy also explained the difference between certificates. First, it says you choose a length of time you want to leave the money in the certificate, or the term. You can withdraw the money before the term, but you will usually have a penalty for doing so.

He also explained that there are two types of certificates. The first is a standard certificate. With this, you put in a certain amount of money and leave it there for the term or duration of the certificate. Depending on your institution, the money will either earn the same fixed rate you signed up for, or you can purchase an option like the one Mountain America offers, where for a slightly lower initial rate, you get a one-time option to increase the rate to your certificate if the certificate rate offered by the institution increases.

The second type of certificate is the flexible or growth certificate. Again, this varies by bank or credit union, so you’ll want to do a little research to see what’s out there. With the growth certificate, you don’t have to put all the money in the certificate account up front. Instead, you put whatever you want in the beginning and lock in that rate. Later, you can keep adding money – up to a maximum limit – to increase your earnings. You may not necessarily have the ability to raise your rates, but you also won’t have to invest as much up front and can grow your savings along the way.

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