Higher Interest Rates Reward Savers While Managing Debt Burdens So Far

High interest rates mean savers are finally being rewarded with returns close to 5% in money market accounts where over $6 trillion is deposited.

While interest payments have surged for Americans, higher interest income from savings has virtually offset the impact.

Personal interest income has jumped to $1.83 trillion annually compared to $1.5 trillion three years ago.

Household assets have grown more than liabilities since 2020, suggesting consumers aren't drowning in debt due to high rates.

This sunny scenario applies mainly to a specific type of consumer - those owning stocks and houses over the past decade+ who are college educated and hard working.