How to learn about rates went up this week or month
The fastest way to know whether rates have risen is to compare what you see today against what you saw a few days or weeks ago. If you have a savings account, money market account, or CD that you opened recently, check your account statement or log into your bank's website — the rate shown there is what you locked in on that date. If that rate is lower than what the bank is advertising now for new accounts, rates have gone up.
For a broader picture, visit the Federal Reserve's website (federalreserve.gov) and look for the current federal funds rate. This is the interest rate that banks charge each other overnight, and it is the anchor that moves all other rates. When the Fed raises or lowers this rate, savings accounts, CDs, and money market rates typically follow within days or weeks. The Fed announces rate changes at scheduled meetings, usually eight times per year, so you can also check the Fed's calendar to see whether a decision happened recently.
You can also check financial news sites like Bankrate, NerdWallet, or DepositAccounts, which track and publish the average rates banks are offering on savings accounts and CDs. These sites show historical data, so you can see what rates were a month ago and what they are today. The difference tells you whether rates have moved up or down.
Key Takeaways
- Compare the interest rate on your account statement to the rate your bank is advertising for new accounts right now — if the new rate is higher, rates have gone up since you opened your account.
- The Federal Reserve's website shows the current federal funds rate and a calendar of past and upcoming rate decisions, which is the clearest signal of whether rates moved recently.
- Financial comparison sites like Bankrate and DepositAccounts publish historical rate data, so you can see what rates were weeks or months ago and compare them to today.
- Rates on savings accounts, money market accounts, and CDs usually rise within one to two weeks after the Federal Reserve raises its rate, though some banks move faster than others.
Why the Federal Reserve rate matters more than your bank's rate
Your bank's savings account rate and the Federal Reserve's rate are not the same thing, but they move together. When the Fed raises its rate, banks have more incentive to offer higher rates on savings accounts and CDs because they can earn more money by lending. When the Fed cuts its rate, banks lower what they pay you.
The Federal Reserve rate is the one that actually changes on a set schedule — usually every six weeks at a meeting of the Federal Open Market Committee. Your bank's rate can change any day, but most banks wait to see what the Fed does first. If you want to know whether rates are about to go up, watch the Fed's meeting calendar and news coverage of what Fed officials are saying. If you want to know whether rates have already gone up, check what your bank is paying on new accounts.
What happens to your existing account if rates go up
If you already have a savings account or money market account, the interest rate you are earning right now is usually not locked in — your bank can change it at any time without notice. When rates go up across the market, your bank may or may not raise the rate on your existing account. Some banks raise rates on all accounts automatically. Others raise rates only on new accounts and leave existing customers at the old rate.
If your bank does not raise your rate when market rates go up, you have the option to move your money to a different bank that is offering a higher rate. This is one reason to shop around: if you opened a savings account when rates were low and rates have since risen, you may be earning significantly less than you could elsewhere. Moving money between banks is free and usually takes three to five business days.
CDs are different. When you buy a CD, the interest rate is locked in for the entire term — three months, one year, five years, or whatever you chose. If rates go up after you buy a CD, your rate does not change. This is the trade-off of a CD: you get a may provide rate, but you cannot benefit if rates rise later. If rates fall, you are protected because your rate stays the same.
How to know if rates are likely to go up or down in the future
The Federal Reserve publishes a statement after every rate decision that explains what it did and why. The statement also hints at what might happen next. If the Fed says it is "data dependent" or "monitoring inflation," it usually means rates could move in either direction depending on economic news. If the Fed signals that rates will stay steady for a while, that is a signal to lock in a CD rate if you like what you see.
News coverage of Fed meetings and economic reports can also give you clues. When inflation is rising, the Fed tends to raise rates. When the economy is slowing, the Fed tends to cut rates. You do not need to predict the future perfectly — you just need to know enough to decide whether to lock in a CD rate now or wait for a savings account rate to move higher.
Comparing your current rate to what new customers get
The easiest comparison is between your own account and your own bank's website. Log in, look at your current rate, then visit the bank's home page and see what rate they are advertising for new accounts of the same type. If the new rate is higher, you know rates have gone up since you opened your account.
You can also compare your bank to other banks. If your bank is offering 4.50% on a one-year CD and another bank is offering 5.00%, you know that either rates have gone up and your bank has not caught up, or your bank is simply paying less than competitors. Either way, moving your money to the higher-paying bank makes sense if you do not have other reasons to stay (like a relationship with a local branch or a checking account you want to keep bundled with savings).
Why some banks raise rates faster than others
When the Federal Reserve raises its rate, not all banks raise their rates at the same speed. Large national banks often move slowly because they have many customers and can afford to wait. Smaller banks and online-only banks often raise rates faster because they need to attract deposits and compete on rate.
This is why you might see one bank offering 5.25% on a savings account while another offers 4.75%, even though both are responding to the same Fed rate. The higher-paying bank is trying to pull in deposits. The lower-paying bank is betting that customers will not shop around. If you notice a gap like this, it is a signal to move your money or ask your current bank to match the rate.
Frequently Asked Questions
How long does it take for my bank to raise my rate after the Fed raises its rate?
Most banks raise rates on new accounts within one to two weeks of a Fed decision. Rates on existing savings accounts may take longer or may not rise at all — it depends on the bank's policy. CDs never change rate once you buy them. If your bank is slow to raise rates, moving your money to a faster-moving bank is usually free.
If I have a CD, do I lose money if rates go up after I buy it?
You do not lose money, but you miss out on earning more. Your CD rate stays the same for the entire term. If you need to withdraw the money early, you will pay an early withdrawal penalty, which is usually a few months of interest. It is usually not worth breaking a CD just to chase a slightly higher rate elsewhere.
Can I move my money to a different bank if my current bank does not raise rates?
Yes. Moving money between banks is free and takes three to five business days. You can open a new account at a higher-paying bank and transfer your savings there. You do not need permission from your current bank, and they cannot charge you for leaving.
Where can I see the history of interest rates over the past year?
The Federal Reserve's website shows the history of the federal funds rate going back decades. Financial comparison sites like Bankrate and DepositAccounts show the history of savings account and CD rates at major banks. You can use these to see how much rates have moved since you opened your account.
What does it mean when the Fed says it will hold rates steady?
It means the Fed does not plan to raise or lower its rate at the next few meetings. This is useful information if you are deciding whether to lock in a CD rate now or wait. If the Fed says rates will stay steady, locking in a CD makes sense because you know rates are unlikely to go higher soon.