How to check whether rates have moved since you last looked

Interest rates move almost every day, so the rate you saw last week may not be the rate today. To know whether rates went down, you need to compare what banks are offering right now to what they offered on a specific earlier date — not just remember a number from memory.

The clearest way is to check the same bank or the same rate-tracking website on two different days and write down the numbers. If the current rate is lower than the earlier rate, rates went down. If it is higher, rates went up. If it is the same, nothing changed.

You can also look at the Federal Funds Rate, which is the interest rate the Federal Reserve sets. When that number drops, banks usually lower their savings account rates, money market rates, and CD rates within days or weeks. When it rises, banks raise those rates. The Federal Reserve announces changes on specific dates, so you can check whether a change happened on a particular day by looking at the Federal Reserve's official website.

Key Takeaways

  • Interest rates change almost daily, so you need to compare today's rate to a rate from a specific earlier date to know whether they moved.
  • The Federal Funds Rate set by the Federal Reserve is the main driver of savings rates, money market rates, and CD rates at banks.
  • You can track rate changes by checking the same bank's website on different days or by watching the Federal Reserve's announcement schedule.
  • Banks do not always move their rates on the same day the Federal Reserve changes its rate — some wait days or weeks.

Why rates move and what moves them

The Federal Reserve meets eight times per year to decide whether to raise, lower, or hold the Federal Funds Rate steady. This is the interest rate that banks charge each other for overnight loans. When the Federal Reserve raises this rate, banks raise the rates they offer on savings accounts, money market accounts, and certificates of deposit. When the Federal Reserve lowers it, banks usually lower those rates too.

The Federal Reserve changes rates based on inflation, employment, and economic growth. If inflation is high, the Federal Reserve typically raises rates to cool down spending and bring prices down. If the economy is weak or unemployment is high, the Federal Reserve typically lowers rates to encourage borrowing and spending.

Banks do not always change their rates on the same day the Federal Reserve announces a change. Some banks move quickly, within one or two days. Others wait a week or longer. A few banks move their rates on their own schedule, independent of Federal Reserve decisions, though this is less common.

Where to find current rates and compare them to past rates

The Federal Reserve publishes its own rate decisions on its official website, federalreserve.gov. You can see the exact date and time of each announcement and what the new rate is. The site also shows historical rates going back decades, so you can see what the rate was on any past date.

Individual banks publish their current rates on their own websites. Most banks show the rate for savings accounts, money market accounts, and CDs right on the homepage or in an account details section. To compare rates over time, you can visit the same bank's website on different days and note the numbers, or you can take a screenshot to save the rate you see today.

Rate-tracking websites like Bankrate, DepositAccounts, and Money Market Account Rates show current rates from many banks in one place. These sites usually show the date the rate was last updated. Some of them also show historical rate data, so you can see what a particular bank was offering a week or a month ago.

What changed if rates went down

If interest rates went down, the money you earn on savings accounts, money market accounts, and CDs will be lower going forward. If you have money in one of these accounts, your next interest payment will be smaller than your previous one. This happens because the bank is paying you less interest on your balance.

Lower rates also mean that if you are thinking about opening a new savings account or CD, you will earn less money than you would have earned a week or a month ago. A CD that paid 4.50% last month might pay 4.25% this month if rates fell.

Lower rates are generally good news if you are borrowing money — a mortgage, car loan, or personal loan will cost you less in interest. But they are not good news if you are saving money, because your savings will grow more slowly.

What changed if rates went up

If interest rates went up, the money you earn on savings accounts, money market accounts, and CDs will be higher going forward. Your next interest payment will be larger than your previous one. If you are thinking about opening a new account, you will earn more money than you would have earned a week or a month ago.

Higher rates are good news for savers because your money grows faster. But they are not good news for borrowers, because loans cost more in interest.

How to decide what to do with this information

If rates went down and you have money sitting in a regular savings account earning a low rate, you might want to move it to a high-yield savings account or a CD. Even though rates are lower than they were, high-yield accounts still pay more than regular savings accounts. Checking current rates on a rate-tracking website will show you which banks are paying the most right now.

If rates went up and you were waiting to open a CD or savings account, the higher rates mean this is a better time to lock in your money. CDs especially benefit from higher rates because the rate is fixed for the entire term — if you open a one-year CD at 4.75%, you will earn that rate for the full year even if rates drop later.

If rates went down and you are thinking about borrowing money, this might be a good time to lock in a rate on a mortgage or loan. If rates went up, you might want to wait and see whether they come back down, or move forward if you need the money now.

Frequently Asked Questions

How often do interest rates change?

The Federal Reserve meets eight times per year to decide on rate changes, so major announcements happen roughly every six weeks. Banks can change their own rates any day, so the rates you see at your bank can shift weekly or even daily, even on days when the Federal Reserve does not meet.

If the Federal Reserve lowered rates, why didn't my bank lower its rates?

Banks do not have to move their rates on the same day the Federal Reserve announces a change. Some banks wait days or weeks. A few banks move rates on their own schedule. If you notice your bank has not moved, you can call and ask when they plan to, or you can compare their current rate to other banks to see if you are getting a competitive offer.

Can I lock in a rate before it goes down?

Yes. If you open a CD, the rate is locked in for the entire term — if you open a one-year CD at 4.50%, you earn that rate for the full year even if rates drop to 3.00% later. Savings accounts and money market accounts do not lock in rates; they change whenever the bank changes them.

Where can I see the Federal Reserve's rate decision schedule?

The Federal Reserve publishes its meeting calendar on federalreserve.gov. You can see the dates of all eight meetings for the year, and the site announces rate decisions on the day of each meeting, usually in the afternoon.

Do all banks move their rates at the same time?

No. Some banks move rates within one or two days of a Federal Reserve announcement. Others wait a week or longer. A few banks set their own rates based on their own business needs rather than following the Federal Reserve closely. This is why you might see different rates at different banks on the same day.