Interest rates did not drop today — the Federal Reserve sets rates only eight times a year
The Federal Reserve announces changes to its benchmark interest rate on a fixed schedule, not daily. The Fed meets eight times per year on set dates, and rate changes happen only on those meeting days. If you checked rates today and saw them lower than yesterday, the change came from individual banks adjusting what they pay on savings accounts, money market accounts, and certificates of deposit — not from a Fed announcement.
Banks move their own rates in response to market conditions, Fed expectations, and competition for deposits. A bank might lower its savings rate because it has enough deposits right now, or raise it because it needs to attract more money. These moves happen constantly and have nothing to do with whether the Fed met today.
Key Takeaways
- The Federal Reserve meets eight times per year on announced dates; rate changes only happen on those days, not daily.
- When you see your bank's savings rate drop, that is the bank's own decision, not a Fed action.
- Banks adjust their rates based on how much money they need to attract and what they expect the Fed to do next.
- You can find the Fed's meeting schedule and past decisions on the Federal Reserve's website to know when actual rate changes occur.
- Shopping between banks matters more than watching daily rate moves, because the difference between a 4.5% CD and a 5.2% CD is real money over time.
How to tell the difference between a Fed rate change and a bank rate change
When the Federal Reserve changes its benchmark rate, financial news outlets report it immediately and prominently. The announcement comes with a statement from the Fed's policy committee explaining why they raised, lowered, or held rates steady. If you did not see a major news story about a Fed announcement today, the Fed did not meet.
Your bank's rate change is quieter. Banks update their rates on their websites and in their apps without fanfare. You might notice it when you log in, or you might miss it entirely. The bank is not required to notify you of a rate drop on an existing account, though they must tell you about changes to terms before they take effect.
When the Federal Reserve actually meets
The Fed's policy committee meets roughly every six weeks. The 2024 and 2025 meeting dates are published on the Federal Reserve's website at federalreserve.gov under "Meeting Calendars." You can see the exact dates months in advance, so you know when a rate decision is actually coming.
After each meeting, the Fed releases a statement at 2 p.m. Eastern time. If rates changed, that statement says so. If rates stayed the same, it says that too. Financial news sites cover the announcement immediately, so you do not have to hunt for it.
Why your bank's rate dropped even though the Fed did not meet
Banks compete for deposits. When one bank raises its CD rate to 5.2%, nearby banks often follow. When deposit flows slow down, banks lower rates because they do not need to attract as much new money. A bank might also lower rates if it expects the Fed to cut rates soon and wants to lock in higher margins before that happens.
Economic news, stock market moves, and inflation reports all influence what banks think the Fed will do next. Banks do not wait for the Fed to act — they move their rates based on what they think is coming. This is why you can see rate changes on days when nothing official happened.
What to do if you see rates drop at your bank
If you have money in a savings account or money market account earning a variable rate, a drop means your earnings will be lower going forward. You cannot stop the bank from lowering the rate on an existing account, but you can move your money to a bank offering a higher rate. Banks cannot penalize you for withdrawing from a savings account or money market account.
If you are thinking about opening a CD, a rate drop is a signal to move faster if you like the current rate. CD rates are locked in for the term, so a 5.1% one-year CD you open today will pay 5.1% for the full year even if rates fall to 4% next month. But if rates are falling, they may fall further, so locking in today might be smarter than waiting.
How to stay informed about real rate changes
Bookmark the Federal Reserve's website and check the meeting calendar. You will know exactly when the next decision is coming. Set a news alert for "Federal Reserve interest rate decision" so you see the announcement the moment it happens.
For your bank's rates, check your bank's website or app weekly if you are shopping for a new account. Rates change frequently enough that a rate you saw three days ago might be different today. Use a rate comparison site like Bankrate or DepositAccounts to see what banks are offering across your region, but always verify the rate on the bank's own website before you open an account.
Frequently Asked Questions
Does the Fed meet every day?
No. The Federal Reserve's policy committee meets eight times per year on a published schedule. You can see all the dates on federalreserve.gov. Rate decisions happen only on those meeting days.
If my savings account rate dropped, does that mean the Fed cut rates?
Not necessarily. Your bank sets its own rates based on market conditions and competition. The Fed may not have met, or it may have held rates steady while your bank lowered its own rate for business reasons.
Can I lock in a rate before it drops further?
Yes, if you open a CD. The rate you get on the day you open it is locked in for the full term. Savings accounts and money market accounts have variable rates that can change anytime, so they do not lock in.
Where do I find what the Fed actually decided?
The Federal Reserve publishes a statement after each meeting at federalreserve.gov. Major news outlets also report the decision immediately. If you did not see a news story about a Fed announcement, the Fed did not meet.
Should I move my money if my bank's rate drops?
If you are in a savings account or money market account, you can move to a higher-paying bank anytime without penalty. If you are in a CD, you are locked in unless you pay an early withdrawal penalty. Check what other banks are offering before you decide.