GM Trendy Hiverzzz, We are normal people, and we think that interest rates are just a number, but they are not.
The government and banks have set these numbers, but the interest rate shapes financial decisions every day. This shapes decisions, but you can't even realize it..
Interest helps you, and at the same time, it can cause a loss. For example, if you are investing for return, then that interest rate is good for you, but when you are borrowing and taking a loan, you have to pay interest. That's how it works.
Let's say you are taking a loan, and it can be a personal loan, or a property or home loan, and when you are paying interest on it, then you are giving extra money.
So lenders earn money by lending money. When interest rates go low, then there will be easy borrowing and you can get a benefit, but when interest rates are higher, it is difficult to get a loan, and it may not be affordable for you because no one wants to pay higher interest.
Let's say you have a savings account and you are keeping your money in savings, which means when interest rates spike, it can help you earn more money.
But when the interest rate is low, you may receive low interest. Sometimes inflation overtakes your savings account interest; getting it is because of low interest rates.
You may also see volatility in the stock market when interest rates rise, and they are connected.
Which means diversification is also needed in the stock market; it is not just for the crypto but it is for everyone, especially in such times. But there are some benefits too of higher interest rates, and it depends on the field in which you are working.
For the investors, things may differ, but where you are investing is important.
Interest rates have a direct connection with your financial life, and here I have given information with examples. Read carefully and pass the comment below, and it should be relevant to this information. Salam namaste, take care.
"Dream is not that which you see while sleeping, it is something that does not let you sleep." - Avul Pakir Jainulabdeen Abdul Kalam 💪
