Interest rates change constantly, but not every day, and not all at once

Interest rates did not move as a single event today. The federal funds rate—the rate the Federal Reserve sets—only changes when the Fed's policy committee meets, which happens roughly every six weeks. Banks and credit unions set their own rates on savings accounts, money market accounts, and CDs independently, and they can change those rates any day without announcement.

If you want to know whether the rate on a specific account or product changed today, you need to check with your bank directly. There is no single "interest rate" that moves up or down for everyone at the same time. A rate drop at one bank might mean a rate increase at another on the same day.

Key Takeaways

  • The Federal Reserve's rate only changes at scheduled policy meetings roughly six weeks apart, not daily.
  • Your bank can change the rate on your savings account, money market account, or CD any day without telling you in advance.
  • To learn about your rate changed, log into your account online or call your bank's customer service line.
  • Banks often lower savings rates when the Fed cuts rates, but the timing and amount vary by bank.
  • Rate changes on new CDs or accounts you open today do not affect rates on accounts you already have.

Where interest rates come from and why they move

The Federal Reserve sets a target range for the federal funds rate, which is the rate banks charge each other for overnight loans. This is the rate you hear about in the news. The Fed's policy committee meets eight times a year on a published schedule—you can see the dates on the Federal Reserve's website. Between meetings, the rate stays the same.

Your bank's rates on savings accounts, money market accounts, and certificates of deposit (CDs) are separate from the federal funds rate. Banks set these rates based on what they think they can pay and still make money, what competitors are offering, and how much money they need to attract. A bank can raise or lower these rates any day. Most banks lower savings rates when the Fed cuts the federal funds rate, but they do not always do it on the same day, and they do not always lower them by the same amount.

How to check if your bank changed your rate today

Log into your online banking account and look at your account details. Most banks show the current rate on your savings account, money market account, or CD right on the account summary page. If you opened a CD, the rate is locked in for the term you chose—it will not change. If you have a savings account or money market account, the rate can change, and your bank should show you the current rate.

If you cannot find the rate online, call your bank's customer service number. Have your account number ready. Ask them to tell you the current rate on your account and when it last changed. They can also tell you what rate new customers would get if they opened an account today, which may be different from your rate.

If you think your rate dropped unfairly, remember that banks are not required to keep rates the same. You have the option to move your money to a bank offering a higher rate, though you may face early withdrawal penalties if you have a CD.

Why your rate might have changed without you noticing

Banks often change rates on savings accounts and money market accounts without sending a notice. Federal law requires banks to tell you about rate changes, but many do this by posting the change on their website or in your online account rather than sending an email or letter. You might not see it unless you log in and look.

CDs are different. The rate on a CD is locked in when you open it and does not change for the term you chose. If your CD matures and you renew it, the new rate will be whatever the bank is offering at that time, which may be higher or lower than your old rate.

When the Federal Reserve meets and what happens next

The Federal Reserve's policy committee meets eight times per year on dates announced well in advance. You can find the full schedule on the Federal Reserve's website. After each meeting, the Fed announces whether it is raising, lowering, or holding the federal funds rate steady.

When the Fed announces a rate change, banks usually respond within a few days to a few weeks. Some banks move quickly; others wait. There is no rule that says banks must change their rates on any particular day. This is why you might see one bank lower savings rates the day after a Fed cut while another bank waits two weeks.

Comparing rates across banks if yours dropped

If your bank lowered your rate and you want to find a better one, you can compare what other banks are offering. Most banks publish their current rates on their websites. You can also use rate comparison websites, though remember that the rates shown may not be current—check the bank's website directly to confirm.

When comparing, look at the annual percentage yield (APY), not just the interest rate. APY includes the effect of compounding and tells you what you will actually earn. A bank offering 4.50% APY is better than one offering 4.50% interest rate compounded monthly, because the APY already accounts for compounding.

If you find a better rate at another bank, you can open a new account there and transfer your money. You will not face a penalty for moving money from a savings account or money market account. If you have a CD, you may face an early withdrawal penalty if you close it before the term ends, so calculate whether the higher rate at the new bank is worth paying that penalty.

Frequently Asked Questions

Did the Federal Reserve change rates today?

No. The Fed only changes rates at scheduled policy meetings, which happen roughly every six weeks. The next meeting date is published on the Federal Reserve's website. If today is not a meeting day, the federal funds rate did not change.

Why did my savings rate drop but my friend's at a different bank stayed the same?

Banks set their own rates independently. When the Fed cuts rates, some banks lower their savings rates right away, while others wait weeks or do not lower them at all. Banks compete differently, so their responses to Fed changes vary.

If I have a CD, will my rate change?

No. The rate on a CD is locked in for the term you chose—usually three months, six months, one year, or longer. It will not change until the CD matures. When it matures, you can renew it at whatever rate the bank is offering at that time.

Can I move my money to a bank with a higher rate without a penalty?

Yes, if you have a savings account or money market account. You can move money between banks without penalty. If you have a CD, you may face an early withdrawal penalty if you close it before the term ends, so check your CD agreement first.

How often should I check my interest rate?

Check your rate when the Federal Reserve announces a change, or once a month if you want to stay on top of it. You do not need to check daily—rates on existing accounts change infrequently, and you will not miss anything by checking monthly.