English – The Conversation | Higher interest rates: can I make them work for me? by Bomikazi Zeka, Associate Professor in Finance, University of Canberra

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When central banks raise interest rates, borrowers—especially lower‑income households—feel the pinch of higher loan repayments while banks profit from the spread between loan and deposit rates, but savers can turn these hikes to their advantage by moving idle cash from transaction accounts into fixed‑interest products such as term deposits, tax‑free savings accounts or bonds; committing the funds for longer terms maximises higher rates and compounding, and shopping beyond the big banks can secure better offers, turning excess cash into a defensive, interest‑generating asset that offsets the cost of higher borrowing and pushes banks toward more competitive rates.

Read more: https://theconversation.com/higher-interest-rates-can-i-make-them-work-for-me-282632

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