Source: E. Scott Reckard, Los Angeles Times

The Federal Reserve’s cut in its benchmark interest rate Wednesday could put more money in your pocket—or take some out. Or both. Figuring out how you’re affected may be more complicated than usual. Here are questions and answers:

Will I earn less on my bank savings?

If you have money in interest-earning bank accounts or certificates of deposit, you can expect to be “as disappointed as Cubs fans,” said Greg McBride of Bankrate.com in North Palm Beach, Fla. “They’re continuing to take it on the chin every time the Fed cuts rates.”

Bank depositors have benefited lately from intense competition for their money, because the credit crunch has made it difficult for banks to get funds elsewhere. That competition remains “spirited,” but the Fed’s action will probably result in lower rates, said Keith Gumbinger, vice president of rate tracker HSH Associates in Pompton Plains, N.J.

“Instead of promoting an 18-month CD at 4%, they may compete only at 3.5%,” Gumbinger said.

Read Full Article: How the Fed interest-rate cut may affect you