Wallet Wednesday: How rising interest rates could affect you

MYRTLE BEACH, SC (WBTW) – Baxter Hahn with Wells Fargo Advisors in Myrtle Beach joined News13 Now at 9 a.m. on Wednesday to talk about how interest rates could affect people. The Federal Reserve has recently raised short-term interest rates, and more increases are expected. Interest rates have been quite low for several years, so higher rates may have affects that people will notice.

Banks may begin to charge customers higher interest rates, and customers may see higher costs for credit cards, auto loans, and home equity lines of credit.Also, people with financial savings accounts may begin to see higher returns on those savings.

Stocks have traditionally performed well when interest rates are rising. However, the value of bonds decreases as interest rates rise.