Will the down grading of our credit rating increase interest rates on CD's?

[ahlosojoe]

I would appreciate some info from you guys with financial understanding of the situation we are now in. We are told that due to our be down graded on our credit standing all interest on loans, credit cards etc will go up.

How about the interest on saving accounts, cds, money markets. Will interest go up on these. For folks trying to live on interest income it is tough.

Thanks for you opinions. Joe

 

[Dale00]

I would appreciate some info from you guys with financial understanding of the situation we are now in. We are told that due to our be down graded on our credit standing all interest on loans, credit cards etc will go up.

How about the interest on saving accounts, cds, money markets. Will interest go up on these. For folks trying to live on interest income it is tough.

Thanks for you opinions. Joe

I am not a financial expert. My strong hunch is that eventually we will see an increase in the rate paid on CDs. But it will come too late to make up for all the inflation that has come before and that will be happening at the same time.

The alternate scenario is deflation in which you may end up paying the bank to store your money because no one wants to borrow and the bank can make no profit from the use of your money.

Either way, chances are high that people will be hurt and develop a deep distrust of government. Do what you can to reduce your debt and spending

 

[pen25]

cd rates will increase when interest rates increase. the downgrade right now will only increase the return on treasure bonds.