What rising interest rates mean for you

The Federal Reserve on Wednesday increased the overnight bank lending rate to a range of 3% to 3.25% in a continuing effort to combat excessive inflation.

It is the US central bank's third consecutive 75-basis-point increase in six months, which will put upward pressure on other interest rates across the economy.

The Fed's action will prompt people to reconsider where to invest their funds for the highest returns and how to cut down on borrowing costs.

"The rates on credit cards, mortgages, and auto loans are at their highest levels since 1995, 2008, and 2012, respectively.

will become more difficult with the impending rate hikes "affirmed Greg McBride, Bankrate.com's top financial analyst.

"High-yield savings accounts and certificates of deposit are at levels last seen in 2009, which is good news for savers,"

Here are a few strategies for setting up your finances so that you can profit from rising rates while avoiding their drawbacks.

Different loan rates that banks provide their customers with typically increase in response to increases in the overnight bank lending rate, sometimes referred to as the fed funds rate.