Higher interest rates would benefit savers, but not debtors.

[Mika]

Of course that means the well off benefit.

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[valerief]

1. Well, that's the most important thing in the world, isn't it? nt

[Chan790]

2. I'm not sure that's true...

I work for a bank and we're preparing to cut rates on accounts in expectation of a debt-ceiling crisis while raising them on loans. Economic instability raises our costs so we squeeze both ends of the tube to recoup.

Who it benefits is people already in CDs because we're locked into those rates for terms ranging from 6mos to 72mos...that's not major-wealth investors, it's small-businesses and middle-class clients with a few grand to spare but not enough to open an IRA or Money Market. ($2000<x<$10000)

[FarCenter]

3. Do you think that raising savings accounts from 0.1% to 3% would affect credit cards much?

They'd raise them from 28% to 31%?