US stocks open higher ahead of Fed decision on rates

<p>Federal interest rates will (likely) increase. </p><p>"Doing so will be a testament also to how far our economy has come in recovering from the effects of the financial crisis and the Great Recession," Federal Reserve Chair Janet Yellen <a href="http://www.c-span.org/video/?401470-1/federal-reserve-chair-janet-yellen-us-economy" target="_blank">said at The Economic Club in Washington, D.C.</a></p><p>Don't worry. It'll only be a small increase at first: probably about 0.25 percent. That's not much.</p><p>So what will it mean for folks with auto loans, student loans, credit card debt or savings accounts?</p><p>Well, if you're taking out a $25,000 auto loan, a quarter-point increase means you'll only be paying about $3 more a month. Not bad.</p><p>Student loans depend on what type of rate you have: variable or fixed. Fixed rates won't change; those are locked in. This includes any federal student loans. Variable-rate loans will keep pace with increases to the federal interest rate.</p><p>Likewise, credit card rates <a href="http://www.usatoday.com/story/money/2015/12/14/fed-rate-hike-impact/77300960/" target="_blank">will go up at a similar pace</a>. Every time the fed raises its interest rate, the rate on cards will go up as well.</p><p>As for savings, there is some good news here. Your rates will go up — in time.</p><p>The main thing to keep in mind with the federal interest rate hike is that it's small at first. Because of that, its effects are small — at first. As rates continue to go up, though, you may start to feel it more.</p><p><i>This video includes music "tubshop" from </i><i><a href="http://birocratic.bandcamp.com/track/tubshop" target="_blank">Birocratic / CC BY 3.0</a></i><i>.</i></p>