March 11, 2019

The Federal Reserve raised interest rates four times in 2018. Experts predict that additional increases are coming in 2019, hitting at least 3.00% by year end. This is good news for savers because along with the Fed’s boost often comes an increase in certificate rates.

To make the most of certificate investing in a rising rate environment, you’ll want to follow a few simple guidelines.

Time It. Certificate rate increases typically occur just after the Federal Reserve raises rates. Here’s the Fed’s rate-setting calendar to time the purchase of your certificates. Additionally, 1st United tends to increase rates on the first of the month so keep an eye out for announcements.

Ladder It. Using a certificate laddering strategy helps you to start investing now while also taking advantage of a future rate increase. With laddering, you invest smaller amounts of money into certificates that mature at different intervals, and time them so they renew and reinvest annually throughout the rising rate environment.

Bump It. 1st United allows you to bump up your certificate rate once during the term of your certificate. If we raise rates, be sure to take advantage of this by filling out our Certificate Rate Bump Request form.

With a little planning, a watchful eye, and a pulse on what the Federal Reserve is doing, you can maximize your certificate investments. As always, stop by if you have questions or would like help mapping out a certificate strategy.