State of the Market: Raisin’s experts weigh in on the current interest rate environment

Raisin is truly here to help you get the most out of your savings.

Raisin recently hosted its debut consumer webinar, “State of the Market: Understanding the Current Interest Rate Environment,” to answer questions about the larger economic climate and how savers can take advantage of current high rates to prepare for future rate cuts, as well as share a preview of what’s to come from Raisin in 2024.

Hosted by Ben McLaughlin, Chief Marketing Officer & President, with panelists Shana Hennigan, Chief Business Officer, and Cetin Duransoy, Chief Executive Officer, this was the first in a series of planned webinars that will offer Raisin customers additional insights on the economy and our savings platform.

You can watch the webinar below.

With interest rates at the highest they’ve been in decades, savers have been given a unique opportunity: guaranteed returns on insured deposits with limited risk.

But how did we get to this high interest rate environment and how long will it last?

“I think it really is a confluence of a lot of events that created a perfect storm,” Shana Hennigan, Chief Business Officer, said during the webinar, citing the factors including the COVID-19 pandemic, fiscal stimulus, globally supply chain issues, and the war in Ukraine that led to rapid inflation and the Fed’s resulting interest rate increases to tame it.

“So, while inflation is the bad news here, I like to look at the silver lining and the good news is deposits and savings are actually meaningful,” Hennigan added. “Consumers have the opportunity to earn real, competitive returns on FDIC-insured and NCUA-insured deposits.”

And things look set to hold steady.

“Right now, it’s looking pretty certain, at least according to the consensus, that the Fed is going to hold pat and stay steady, keeping rates where they are.”

While rates are looking like they will remain at current highs for now, rate cuts are expected to happen eventually. Whether that’s later this year or in 2025, planning now could allow savers to reap the benefits later on.

“How do we protect ourselves against the expected future Fed rate decreases?” Hennigan asked. “A good way to do that right now is to lock in some of these competitive CDs.”

Certificates of deposit allow savers to lock in rates for a set term. With rate decreases looming, locking in a top CD rate could offer a way to keep earning today's top rates even if they drop before that CD matures.

“The good news is Raisin’s many partner banks and credit unions are offering an array of CD products all across the curve that give our consumers the ability to…hedge a little bit against what the market is telling us.”

Cetin Duransoy, Chief Executive Officer, joined the webinar to hint at what’s to come from the Raisin platform, including new savings products, a new transaction hub called the Cash Account, and an improved user experience.

New products like callable CDs and market-linked CDs are expected to join the offerings available through the Raisin platform. These products will allow savers to grow and diversify their savings portfolio to earn potentially higher returns — without the risk of principal loss.

“These two products are going to be great additions to our product suite,” Duransoy said.

Not only will Raisin savers be able to fund new products, but Duransoy also revealed that a new feature called the Cash Account will launch this summer and will allow customers to reinvest funds faster between banks and credit unions on the platform.

Acknowledging that this was an in-demand feature, Duransoy added, “We heard you loud and clear.”

He also promised an updated user experience. “We’re going to be continuing to work on improving the experience today,” including a new and enhanced login flow as well as an updated mobile app with more features.

With 64 federally insured partner banks and credit unions to date, the Raisin platform allows customers to select and fund savings products across this entire network all from a single account. With no hidden fees and some of the best interest rates available on the market, there are plenty of reasons savers turn to Raisin to grow their cash.

For more information, please click the button below.

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The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.