How to check whether rates have fallen since you last looked

Interest rates move constantly, and the easiest way to see if they have gone down is to compare what banks are offering today against what they offered last time you checked. If you have a savings account or CD, log into your bank's website or app and look at the rate printed on your account statement or in the account details section. Then visit the same bank's website as a non-customer and see what new customers are being offered on the same product. If the new rate is lower than what you are earning, rates have fallen.

You can also check a rate-tracking site like Bankrate, DepositAccounts, or your bank's own rate page to see historical data. Most of these sites show you what rates were a week ago, a month ago, and sometimes further back. The comparison tells you whether the direction is down. Keep in mind that your personal rate may not change even if the market rate falls—banks often lock in the rate you signed up for, especially on CDs.

Key Takeaways

  • Compare the rate your bank is currently advertising to new customers against the rate you are earning on your account to see if rates have fallen.
  • Rate-tracking websites like Bankrate and DepositAccounts show historical rates so you can see the direction over days or weeks.
  • A falling market rate does not automatically lower the rate on your existing savings account or CD—your rate is usually locked in when you open the account.
  • The Federal Reserve's actions influence rates, but banks set their own rates independently, so different banks may move at different speeds.

Why your personal rate might not change even if market rates fall

Banks lock in the interest rate you earn when you open a savings account or CD. If you opened a savings account earning 4.5% and market rates have since fallen to 3.8%, your account still earns 4.5%. The bank does not lower your rate retroactively. This is one of the few ways a falling rate environment actually works in your favor as a saver.

The exception is a money market account, which sometimes has a variable rate that can move up or down with market conditions. Check your account agreement or call your bank to find out whether your money market rate is fixed or variable. If it is variable and rates have fallen, your earnings may have dropped.

What causes interest rates to fall

The Federal Reserve influences rates by raising or lowering its own benchmark rate, called the federal funds rate. When the Fed lowers this rate, banks typically lower the rates they offer on savings products within weeks or months. The Fed usually cuts rates when the economy is slowing or inflation is falling, because lower rates encourage people to borrow and spend money.

Banks also respond to competition and their own funding needs. If one bank raises its savings rate to attract deposits, others often follow. If deposits are plentiful and banks do not need more money, they may lower rates. This is why you can see rates fall even when the Fed has not moved, or why different banks offer different rates on the same product on the same day.

How to find out what rates are doing right now

The fastest way is to visit your bank's website and look at the rates listed for new accounts. Most banks display current rates prominently on their homepage or in a "rates and fees" section. If you have accounts at multiple banks, check each one to compare. You can also call your bank's customer service line and ask what the current rate is on a savings account or CD.

For a broader picture, visit Bankrate.com, DepositAccounts.com, or NerdWallet's rate pages. These sites aggregate rates from hundreds of banks and update daily. You can filter by account type, term length (for CDs), and your state. They also show you how rates have moved over the past week or month, which tells you whether the trend is up or down.

The difference between the Fed rate and what you actually earn

The federal funds rate is the interest rate banks charge each other for overnight loans. It is not the rate you earn on your savings account. When the Fed lowers its rate, banks lower the rates they offer to customers, but not by the same amount. A 0.25% Fed cut might result in a 0.20% cut to savings rates, or sometimes less.

This lag exists because banks have different costs and different strategies. A bank that is struggling to attract deposits might cut rates slowly to keep customers. A bank with plenty of deposits might cut rates faster because it does not need new money. Over time, the market tends to move together, but in the short term, different banks move at different speeds.

What to do if rates have fallen and you want to earn more

If you are earning a low rate on a savings account and rates have fallen across the market, your best option is usually to stay put. Your locked-in rate is now better than what new customers can get. Moving your money to chase a slightly higher rate at another bank costs you nothing in terms of fees, but it takes time and effort, and you may not find a meaningfully better rate.

If you have a CD that is about to mature and rates have fallen, you will earn less on the new CD than you did on the old one. In that case, you can shop around to find the bank offering the highest rate at that moment, or you can keep your money in a savings account temporarily while you wait to see if rates stabilize. There is no penalty for waiting once your CD matures.

Frequently Asked Questions

If the Fed cuts rates, how long before my bank cuts mine?

Banks usually respond within two to four weeks, though some move faster and some slower. Savings rates tend to fall more quickly than CD rates because banks compete harder for savings deposits. Check your bank's website weekly if you want to track the timing.

Can I move my money to a different bank if rates fall?

Yes. You can withdraw your money from one bank and deposit it at another with no penalty, as long as your account is not a CD with a maturity date. If you have a CD, you can withdraw early, but most banks charge a penalty equal to a few months of interest.

Why do different banks offer different rates on the same day?

Banks set their own rates based on how much money they need, what they pay to borrow, and how much they want to compete for deposits. A bank that is flush with deposits can afford to offer lower rates. A bank that needs deposits will offer higher rates to attract them.

Does my rate go down automatically if I have a savings account?

No. Your savings account rate stays the same unless your account has a variable rate, which is rare. Check your account agreement to see whether your rate is fixed or variable. Most savings accounts have fixed rates that do not change.

What is the difference between a savings account rate and a CD rate?

A savings account rate is usually lower but you can withdraw money anytime. A CD rate is higher but your money is locked in for a set period—three months, one year, five years, and so on. When rates fall, CD rates typically fall more slowly than savings rates.