The Fed may raise interest rates this week. Here’s where you should keep your money if that happens.

The Federal Reserve is expected to raise interest rates for the first time since 2023, with a likely increase of 25 basis points, bringing the rate to between 3.75% and 4.00%. This move could make borrowing more expensive for those looking to buy or refinance homes or use personal loans and credit cards. However, it presents an opportunity for savers to earn more by moving their money into accounts that benefit from higher interest rates. Traditional savings accounts, with an average interest rate of 0.38%, are not keeping up with inflation, so savers should consider alternatives like certificate of deposit (CD) accounts. CDs currently offer interest rates as high as 4.50%, significantly more than traditional savings accounts. These accounts have fixed rates, allowing savers to predict their earnings, but they require funds to remain until maturity to avoid penalties. QUESTION: How might rising interest rates influence the financial decisions of young adults entering the workforce?