During 2022, the Federal Reserve has raised interest rates five times and the U.S. central bank has raised them by three-quarters of a point three times — something it hasn't done since the 1980s. Here are three tips on how to take advantage of high interest rates.

Bonds

When rates rise, bond prices fall. Longer term bonds can deliver greater yields than short-term bonds as there are more coupon payments remaining. As of October 2022, yields from the 10-year treasury bond are three times more than the previous year. If you're looking for a low-risk bond that adjusts with inflation, you may want to consider a Series I bond. Its interest rate is adjusted upward when inflation rises, while your payments drop when inflation falls.

Credit Cards

Rising interest rates cause sudden changes in credit card rates. The average in October 2022 is 18.79%, a significant leap from last year's 15.94%. If you're carrying a balance on your credit card (which often means paying a high variable interest rate) it may be worth your while to look for a card that offers zero-rate balance transfers. This could protect you from future interest rate rises.

Banks

If your savings are in one of the big banks, you're unlikely to see them increase their interest rate as they have such vast deposits they don't need to attract new customers. However, there are many online banks offering rates of 2.15% and above, which compares favorably with the 0.01% normally offered by major banks, as of October 2022.