Economy

Fed rate hike: Do these 5 things with your money

The Federal Reserve recently raised its benchmark interest rate, a move that can have a direct impact on your financial health. If you're wondering what to do with your money in light of this decision, we've got you covered. Here are five key things to consider:

1. Evaluate Your Savings Account: The Federal Reserve rate hike means that the interest rates banks pay on savings accounts may go up. Be sure to compare the rates of different banks to get the best return on your money.

2. Consider a Certificate of Deposit: If you're looking for a safe investment with a guaranteed return, consider a certificate of deposit. CDs tend to offer higher interest rates than savings accounts, but they also require you to commit your money for a set amount of time.

3. Pay Down Debt: Interest rates on credit cards and other forms of debt may also increase. Pay off high-interest debt as soon as possible to reduce the amount of interest you'll be paying over time.

4. Rebalance Your Portfolio: If your investments are heavily weighted in stocks, now might be the time to rebalance your portfolio. By investing in bonds and other fixed-income investments, you can help cushion your portfolio against market fluctuations.

5. Invest in the Stock Market: If you're comfortable with risk, consider investing in the stock market. With the Federal Reserve rate hike, you may be able to find opportunities to buy stocks at a lower price.

No matter what you do with your money, it's important to do your research and consult with a financial advisor if you need help. By taking the time to make smart financial decisions, you can help ensure that your money is working for you.