Banking
How the Federal Reserve impacts savings account interest rates
4 min read
The Federal Reserve and Your Money
The Fed just cut interest rates for the first time since 2020. Here are the most important steps you should take with your wallet.
The latest on the Fed from Bankrate’s experts
“The Fed was behind the curve when raising interest rates to corral inflation and the lesson appears to have been learned. By making a larger half-point interest rate cut right from the get-go, the Fed is taking out some insurance against being behind the curve again.”
Fed Lowers Interest Rates With Surprising Half-Point Cut
In a more aggressive move than expected, the Federal Open Market Committee (FOMC) cut their benchmark borrowing rate by half of a percentage point, bringing the key federal funds rate to a new target range of 4.75-5 percent. In the weeks leading up to the meeting, economists thought the Fed would stick with a more modest quarter-point hike, even as investors upped their bets on the bigger move, according to CME Group’s FedWatch tool.
Read More
Recent interest rate trends
Every time the Federal Reserve adjusts interest rates, borrowing and savings rates move in lockstep. Compare Bankrate data to see how the latest Fed decision is impacting rates on key consumer products.
Mortgage rates
This week's mortgage news
Savings rates
What is the average interest rate for savings accounts?
Auto loan rates
Current car loan interest rates
HELOC rates
This week's HELOC news and analysis
Credit card rates
Current credit card interest rates
Experts in all things finance
Our expert reporters and editors bring the news and analysis you need—backed by data and firsthand experience.
About Bankrate
Chief Financial Analyst
Principal U.S. Economy Reporter
Senior Economic Analyst
Editor's picks
Follow us for the latest financial news:
Greg McBride, CFA
Chief financial analyst, Personal Finance
Mark Hamrick
Washington Bureau Chief, Senior Economic Analyst
Sarah Foster
Principal U.S. Economy and Federal Reserve Reporter
Latest articles
And if so, how low can they go?
How might a recession affect the housing market?
Prices rise and fall all the time in the U.S. economy. It’s not always inflation.
The Federal Reserve just lowered interest rates for the first time in four years.
A look at what a bank bailout is with some examples of notable bank bailouts from the past.
If you’ve been thinking of getting a longer-term CD, you may want to make a move.
Fed officials are trying to prevent an economic slowdown from getting worse.
Tune in to Bankrate’s live coverage of the Fed’s first rate cut since 2020.
Behind the slowing economy is a Fed determined to defeat red-hot inflation.
You might not feel better about inflation because prices are still up post-pandemic.
Prices rise and fall all the time in the U.S. economy. It’s not always inflation.
Economists see a slower job market in the year ahead but recession odds remain low.
Fed officials are trying to prevent an economic slowdown from getting worse.
Tune in to Bankrate’s live coverage of the Fed’s first rate cut since 2020.
The key benchmark has been as high as 20 percent — and as low as 0 percent.
This Fed communication tool is important, but be cautious when interpreting it.
You might not feel better about inflation because prices are still up post-pandemic.
Economists see a slower job market in the year ahead but recession odds remain low.
Savings yields topping inflation could let you hold onto your purchasing power.
Fed officials are trying to prevent an economic slowdown from getting worse.
Tune in to Bankrate’s live coverage of the Fed’s first rate cut since 2020.
For savers, here’s what to consider when the Fed raises interest rates.
The key benchmark has been as high as 20 percent — and as low as 0 percent.
The Federal Reserve announced that it’s lowering interest rates following its September 17-18 meeting.
The trusted provider of accurate rates and financial information