Interest rates change daily, and the rate you see depends on the type of account and the bank

There is no single "today's interest rate." Banks and credit unions set their own rates for savings accounts, money market accounts, and certificates of deposit (CDs). The Federal Reserve sets a benchmark rate that influences what banks offer, but each institution decides what to pay you. A savings account at one bank might pay 4.50% while another pays 3.75% for the same account type on the same day.

The rate you receive also depends on how much you deposit, how long you lock your money away, and what type of account you choose. A 12-month CD typically pays more than a savings account because you cannot touch the money for a year. A high-yield savings account pays more than a standard savings account at the same bank. These differences exist because banks manage risk differently depending on when they can access your money.

Key Takeaways

  • Interest rates vary by bank, account type, and deposit amount, so comparing rates across multiple institutions takes 15 to 20 minutes but can add hundreds of dollars to your earnings annually.
  • The Federal Reserve's benchmark rate influences what banks offer, but it does not set the rate you receive — your bank does.
  • Longer-term CDs and high-yield savings accounts pay more than standard savings accounts because banks can use your money for longer periods.
  • Online banks typically offer higher rates than brick-and-mortar banks because they have lower overhead costs.

How to find current rates from major banks and credit unions

Visit the website of each bank or credit union directly and look for the savings or deposit rates page. Most institutions list current rates prominently on their homepage or under a "Rates" or "Products" tab. You will see rates for savings accounts, money market accounts, and CDs with different terms (3 months, 6 months, 1 year, 2 years, and so on). Write down the rates and the minimum deposit required for each account type.

If you bank locally, call your branch or visit in person — some credit unions and smaller banks do not publish rates online. Ask specifically about the annual percentage yield (APY), not just the interest rate. APY includes the effect of compounding, so it is the true number that matters for your earnings.

Where online banks typically offer higher rates

Online-only banks and online divisions of larger banks usually pay 0.50% to 1.50% more than traditional brick-and-mortar banks on the same account type. This happens because online banks have no physical branches, no tellers, and lower operating costs. They pass some of those savings to customers through higher rates. Banks like Marcus, Ally, and American Express Personal Savings have historically offered competitive rates, though the specific rates change weekly.

Credit unions sometimes match or beat online bank rates, especially if you are a member of a large credit union network. Check your own credit union first, then compare to two or three online options. The difference between 4.25% and 5.00% on a $10,000 deposit is $75 per year — worth 20 minutes of comparison shopping.

Understanding the relationship between the Federal Reserve rate and what you earn

The Federal Reserve sets a target range for the federal funds rate, which is the rate banks charge each other for overnight loans. When the Fed raises this rate, banks typically raise the rates they offer on savings accounts and CDs within weeks. When the Fed cuts rates, banks usually cut what they pay you. This lag means your rate may not change immediately after a Fed announcement, but it will move in the same direction over time.

The Fed's rate influences the direction of savings rates, but it does not determine them. Two banks facing the same Fed rate can offer different rates to customers based on how much deposit money they need and how they manage their business. During periods when banks have plenty of customer deposits, rates may stay flat or even drop even if the Fed holds steady.

How CD rates compare to savings account rates right now

CDs pay more than savings accounts at the same bank because your money is locked away for a fixed period. A 1-year CD might pay 4.75% while a savings account at the same bank pays 4.25%. A 5-year CD might pay 4.90%. The longer the term, the higher the rate — usually. This is called the yield curve, and it rewards you for giving up access to your money.

The trade-off is real: if you withdraw from a CD before the term ends, you pay an early withdrawal penalty that can erase months of interest earnings. If you might need the money within a year, a savings account is safer even if it pays less. If you know you will not touch the money for 18 months, a 18-month CD locks in a higher rate and protects you if rates drop.

Money market accounts and how their rates fit between savings and CDs

A money market account is a hybrid: it pays more than a savings account but less than a CD, and it gives you limited check-writing or debit card access without locking your money away. The rate on a money market account changes monthly or quarterly based on market conditions, so it is not fixed like a CD rate. Some people use money market accounts as a middle ground when they want higher returns than savings but need more flexibility than a CD allows.

Money market accounts usually require a higher minimum deposit than savings accounts — often $2,500 to $10,000 depending on the bank. If you have that amount and want a rate between savings and CDs, compare money market rates alongside both. The difference in earnings over a year may be small, but it adds up if you are holding several thousand dollars.

Why rates change and what to watch for

Interest rates move because of inflation, economic growth, and Federal Reserve decisions. When inflation is high, the Fed raises rates to cool spending and borrowing. When the economy slows, the Fed cuts rates to encourage borrowing and spending. Banks adjust what they pay you based on these shifts and on their own need for deposits. A bank that has too much customer money might lower rates; a bank that needs more deposits might raise them to attract customers.

If you are holding money in a savings account or money market account, your rate can drop at any time with notice (usually 30 days). If you lock money in a CD, your rate is fixed for the entire term. This is why some people build a "CD ladder" — buying multiple CDs with different maturity dates so that some money matures and becomes available each month or quarter, and they can reinvest at whatever rates are current at that time.

Frequently Asked Questions

What is the difference between interest rate and APY?

Interest rate is the percentage the bank pays on your balance. APY (annual percentage yield) includes the effect of compounding — how often interest is added back to your account and earns interest itself. APY is always equal to or higher than the interest rate, and it is the number you should use to compare accounts across banks.

Do I need to check rates every day?

No. Rates change slowly and in small increments. Check rates once a month or whenever the Federal Reserve makes an announcement. If you are shopping for a new account, compare rates across three to five institutions on the same day, then move your money. You do not need to monitor daily unless you are a very active trader, which is not typical for savings.

Will my rate go up if the Fed raises rates?

Probably, but not immediately and not by the same amount. Banks usually raise savings rates within two to four weeks of a Fed increase, but they may not raise by the full amount. Your bank may also raise rates on new deposits while keeping rates lower for existing customers. If your rate does not move after a Fed increase, you can shop for a better rate elsewhere.

Is a higher rate always better?

Not if it comes with strings attached. A CD with a high rate but a steep early withdrawal penalty may not be worth it if you might need the money. A savings account with a high rate but a $25,000 minimum deposit does not help if you have $5,000. Compare the full terms — rate, minimum deposit, access, and penalties — not just the headline number.

What happens to my rate when a CD matures?

Your CD stops earning interest on the maturity date. Most banks give you a grace period (usually 10 days) to decide what to do. You can withdraw the money, move it to a savings account, or roll it into a new CD at whatever rate the bank is offering that day. If you do nothing, many banks automatically renew the CD at the current rate, so check your account around the maturity date.