Interest rates change daily, so the rate you see today may not be the rate you get tomorrow

The interest rate you earn on a savings account, money market account, or certificate of deposit (CD) depends on three things: the Federal Reserve's current policy rate, your bank or credit union's decision about how much of that rate to pass on to you, and the type of account you choose. Because banks adjust their rates independently and sometimes daily, there is no single "the" interest rate — only the rates individual institutions are offering right now.

The Federal Reserve sets a target range for the federal funds rate, which influences but does not directly set consumer savings rates. When the Fed raises or lowers its rate, banks typically follow within days or weeks, but some move faster than others. A high-yield savings account at an online bank might offer 4.50% while a brick-and-mortar bank down the street offers 0.01% on the same type of account.

To find the actual rates available to you, you need to check the websites of banks and credit unions where you have accounts or where you are considering opening one. There is no official government rate-tracking site for consumer savings products, though the Federal Reserve publishes its own rate decisions at federalreserve.gov.

Key Takeaways

  • Interest rates on savings accounts and CDs vary by institution and change without notice, so the rate advertised today may be different next week.
  • Online banks and credit unions typically offer higher rates than traditional brick-and-mortar banks because they have lower overhead costs.
  • The Federal Reserve's rate decisions influence but do not directly set the rates you see on savings products.
  • You can compare current rates by visiting bank websites directly or using rate-comparison tools that pull data from multiple institutions.
  • CD rates are usually higher than savings account rates, but your money is locked in for a set period and early withdrawal carries a penalty.

How to check rates at your current bank

Log into your online banking portal or call the customer service number on the back of your debit card. Ask specifically for the current annual percentage yield (APY) on savings accounts and money market accounts. Write down the exact rate and the date you checked it — rates can change within days.

If you have a CD that is maturing soon, ask what the current CD rates are for the term length you want (3-month, 6-month, 1-year, 5-year, and so on). Your bank will quote you the rate for a new CD, which may be higher or lower than what you earned on the one that is expiring.

Where online banks and credit unions post their rates

Online banks like Marcus, Ally, American Express Personal Savings, and Discover typically display their current savings and CD rates on their home pages without requiring you to log in. You can see the rates before you open an account. These institutions usually offer higher APY than traditional banks because they do not maintain physical branches.

Credit unions post rates on their websites as well. If you are a member of a credit union, log in to check your options. If you are not a member but are curious about a specific credit union's rates, visit their website directly. Some credit unions restrict membership to people who live or work in a certain area or belong to a specific employer or organization.

Rate-comparison websites like Bankrate, DepositAccounts, and NerdWallet pull current rates from multiple banks and credit unions and let you filter by account type, term length (for CDs), and minimum deposit. These sites update frequently but may lag by a few hours, so always confirm the rate on the bank's own website before opening an account.

The difference between savings account rates and CD rates

Savings accounts and money market accounts are liquid — you can withdraw your money whenever you want without penalty. Because of that flexibility, banks offer lower interest rates on these accounts. Right now, high-yield savings accounts at online institutions typically offer rates in the range of 4% to 5%, though this varies.

CDs lock your money in for a set period — usually 3 months to 5 years, though some banks offer longer terms. In exchange for that commitment, banks pay higher rates. A 1-year CD might pay 4.75% to 5.25% depending on the bank, while a 5-year CD might pay 4.50% to 5.00%. If you withdraw money from a CD before the maturity date, you pay an early withdrawal penalty, which is usually a certain number of months of interest.

The longer the CD term, the more interest rate risk the bank takes on, so you might expect longer terms to pay more. That is not always true — sometimes a 1-year CD pays more than a 5-year CD. Check the rates for each term length separately.

Why rates differ between banks

Banks set their own rates based on how much they need deposits and what they can earn by lending that money out. A bank that is trying to attract new customers might offer a higher rate on savings accounts. A bank that has plenty of deposits might lower its rates because it does not need more money coming in.

Online banks can offer higher rates because they have no physical locations to maintain, no tellers to pay, and lower overall operating costs. They pass some of those savings on to customers in the form of higher interest rates. Traditional banks with branches have higher costs and often offer lower rates to offset that.

Credit unions are member-owned and non-profit, so they sometimes offer competitive rates as well. However, not all credit unions offer high rates — it depends on the individual institution's strategy and financial position.

What happens to your rate if the Federal Reserve changes policy

When the Federal Reserve raises its target rate, banks usually raise the rates they offer on savings accounts and CDs within days or weeks. When the Fed cuts rates, banks typically cut consumer rates as well, though sometimes more slowly. The relationship is not one-to-one — a 0.25% Fed rate cut does not automatically mean your savings rate drops by 0.25%.

If you have money in a savings account, your rate can change at any time and without notice. Banks must notify you before the change takes effect, but the notification often comes after the rate has already dropped. If you have a CD, your rate is locked in for the entire term — it will not change, even if the Fed raises or lowers rates.

Tools and websites for tracking rates over time

Bankrate publishes a weekly rate report that shows how savings rates have moved over the past several weeks. DepositAccounts maintains a historical chart of rates at major banks so you can see whether rates are trending up or down. These tools help you understand whether the current rate environment is favorable for saving or whether rates may move soon.

The Federal Reserve's website (federalreserve.gov) publishes its own rate decisions and economic projections. If you want to understand what the Fed is likely to do next, the "Summary of Economic Projections" released after each policy meeting includes the Fed's own forecast of future rate changes.

None of these tools can predict the future, but they can help you see the pattern of recent changes and make a more informed decision about whether to lock in a CD rate now or wait for rates to potentially move higher.

Frequently Asked Questions

What is today's federal funds rate?

The Federal Reserve sets a target range for the federal funds rate, which changes based on economic conditions. You can find the current target range on the Federal Reserve's website at federalreserve.gov. The Fed announces rate changes after policy meetings, which happen roughly every six weeks. The federal funds rate influences but does not directly determine the rates you see on savings accounts and CDs.

Why is my bank's rate lower than the rates I see online?

Traditional banks with physical branches typically offer lower rates than online banks because they have higher operating costs. Your bank may also have lowered rates if it has plenty of deposits and does not need to attract new customers. You can move your money to a higher-paying institution, though you will need to open a new account and transfer funds, which usually takes one to three business days.

If I open a CD now, will my rate lock in?

Yes. Once you open a CD, the interest rate you are quoted is locked in for the entire term. If rates rise after you open the CD, you will not benefit. If rates fall, you will be glad you locked in the higher rate. This is why some people open multiple CDs with different maturity dates — it spreads out the risk that rates will move against them.

How often do banks change their savings rates?

Banks can change savings account rates at any time without notice, though they must inform you before the change takes effect. Some banks change rates weekly, others monthly, and some less frequently. If you want to know whether your rate has changed, check your bank's website or log into your account — the current rate should be displayed there.

Are rates the same at every branch of the same bank?

Yes. A national bank's rates are the same across all branches and online. However, some banks offer different rates for different account types or different minimum deposit amounts. Always check the specific account you are interested in, because a promotional rate for new customers might be higher than the standard rate for existing customers.