Bonds and Interest Rates

The Impact of Rising Interest Rates and How to Prepare

When the Federal Reserve raises interest rates most all aspects of the economy are affected, but not all in a good way. It is prudent for investors to understand how their investments typically react so they can be prepared.

Fixed-Income Investing Tools: Bonds

Bonds are a fixed income investment that can be used to help diversify a portfolio. They offer the benefit of less risk exposure than stocks, while still offering returns, especially in higher interest rate environments.

Fixed Income Investments: CD & Money Market Accounts

CDs and Money Market Accounts are generally considered safer investments for those looking for higher returns than a standard savings account offers. Learn about the use of CDs and Money Market Accounts as fixed income investments and how they could benefit your portfolio.

Why Interest Rates Change

Fluctuations in the interest rate can increase or decrease payments on debts as well as rate of return on investments. Understanding what causes interest rates to change could help you secure the best rates, whether it be for a loan or an investment opportunity.


Join over 170,000 Lessons from the Pros readers. Get new articles delivered to your inbox weekly.

Free Class