Ask Stash

How do interest rates work?

Interest rates determine many things, including how much your money grows while sitting in a checking or savings account. I can also influence how much money you pay toward credit card or mortgage payments.

The Federal Reserve (AKA The Fed) sets interest rates “to help set the backdrop for promoting the conditions that achieve maximum sustainable employment, low and stable inflation, and moderate long-term interest rates.”

Didn’t find your question?

Shoot us your question and our Stash experts will get back to you.

Submit a question