An interest rate hike means that loans cost more to service, a fact that can hurt those carrying debt like mortgages, student loans and auto loans. However, higher rates are also good news for savers who use savings tools such as bank accounts and certificates of deposit (CDs). These products typically pay out more when interest rates rise.

The Federal Reserve, the central bank that sets the cost of borrowing between banks, is a big factor in consumer loan and savings rates. Increasing or decreasing rates can have a major impact on the economy, helping to heat up or cool down the nation’s spending habits.

When the Fed raises rates, it’s to fight inflation. The higher rates make it harder for businesses to borrow money, which can slow investment and spending and help bring down prices. Consumers also tend to park more of their income in safe interest-bearing accounts, such as savings accounts and CDs, which can decrease demand for goods and services and lower overall prices.

But the exact number of times the Federal Reserve will raise rates in a year is a guessing game and can change quickly. If you’re worried about rising interest rates, you can try to plan ahead by refinancing high-interest debt sooner rather than later. That includes private student loans and car loans, as well as mortgages that have variable-interest rates. SoFi offers competitive fixed-rate student and auto loans with terms of five, seven, 10 or 20 years.