Fed Rate Decision October 2026: What It Means for Your Savings and CD Rates
What the Federal Reserve's Oct 28, 2026 decision means for high yield savings and CD rates, what banks did before the meeting, and today's top rates.
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The Federal Reserve held its benchmark federal funds rate at 3.75% to 4.00% on Oct 28, 2026, in a 10 to 2 vote; the two dissenters, Lisa D. Cook and Beth M. Hammack, wanted a quarter point hike. For savers, that means high yield savings rates should stay close to where they are for now: the top account we track with no monthly rules, Pibank Savings, pays 4.40% APY (as of Oct 21, 2026), and the best CD we track pays 5.00%. Several banks raised CD rates the day before the meeting.
The decision matched what forecasters expected. The Fed raised rates once this year, on Sep 16, 2026, and has now paused. In its statement, the Fed said economic activity “is expanding at a strong pace” and inflation “remains elevated.” Our read: with two votes for a hike, another increase is still possible, so savings rates have little reason to fall right away. The next decision is on Dec 9, 2026. Source: Federal Reserve statement, Oct 28, 2026.
Update note (Oct 28, 2026): We are rechecking every savings and CD rate we track at each bank’s website this week. Any change we find through Nov 4, 2026 will be logged in the Updates section below.
How the Fed’s decision reaches your savings account
The Fed sets a target range for the federal funds rate, the rate banks charge each other overnight. It does not set the rate on your savings account. Banks decide that themselves, but they tend to follow the Fed:
- High yield savings and money market rates are variable. Banks can change them at any time, often within days or weeks of a Fed move, and sometimes before it.
- CD rates are fixed once you open the CD. New CD rates move with expectations for future Fed decisions, so they often change ahead of a meeting.
- Not every bank moves. Some online banks hold their rates steady for months. Western Alliance, for example, has kept its savings rate unchanged since Jan 8, 2026.
What banks did before the meeting
Several banks we track raised CD rates on Oct 27, 2026, the day before the decision:
| Bank | What changed (Oct 27, 2026) |
|---|---|
| CFG Bank | 12 month 4.46% to 4.65%; 18 month 4.50% to 4.70%; 3 and 5 year 4.40% to 4.82%; new 2 year CD at 4.82% |
| Synchrony | 9 month 4.15% to 4.50%; 2 year 4.35% to 4.60%; 3 and 4 year 4.40% to 4.65%; 5 year 4.50% to 4.75% |
| Capital One 360 | 11 and 14 month CDs 4.40% to 4.50% |
Rates checked at each bank’s own website on Oct 27, 2026. Every change we log is on our rate history tracker.
In the last 30 days we logged 59 rate changes at 12 banks: 56 increases and 3 cuts. The latest: Capital One raised its 11 month 360 CD rate from 4.40% to 4.50% APY (Oct 27, 2026).Today’s top rates
| APY | Where | |
|---|---|---|
| Top savings account with no monthly rules | 4.40% | Pibank Savings |
| Best CD rate we track | 5.00% | Sallie Mae Bank CDs |
| FDIC national average savings rate | 0.38% | FDIC, Oct 19, 2026 |
| FDIC national average 12 month CD | 1.76% | FDIC, Oct 19, 2026 |
Live rates from our checks at each bank’s website. Compare every account on our best high yield savings accounts and best CD rates pages.
What it means for your money
- Your savings rate can change. If your bank pays far less than the top rates above, moving takes about 10 minutes online and your money stays FDIC insured up to $250,000 per depositor, per ownership category.
- A CD locks today’s rate. If you will not need the money for a set time and want a rate that cannot fall, a CD does that. You pay a penalty to withdraw early.
- Do not chase a single Fed meeting. One decision rarely moves savings rates by more than a quarter point. The gap between a high yield account and the national average is far bigger than any single Fed move.
Updates
- Oct 28, 2026, 2:00pm ET: The Fed held the federal funds target range at 3.75% to 4.00% (vote 10 to 2). Rates on this page are live from our latest checks; savings and CD rate changes we find this week will be added here with their dates.
When is the next Fed meeting?
The Fed’s last meeting of 2026 is Dec 8 to 9, with the decision on Dec 9 at 2:00pm ET. Its 2027 meetings start Jan 26 to 27. See every decision and how savings rates responded on our Fed rate decisions and savings rates page.
Frequently asked questions
Did the Fed change rates in October 2026?
No. On Oct 28, 2026, the Fed held the federal funds target range at 3.75% to 4.00%, where it has been since its Sep 16, 2026 increase. The vote was 10 to 2, with two members preferring a quarter point hike.
Will my savings account rate change after the Fed decision?
It can. High yield savings rates are variable, and banks often adjust them within days or weeks of a Fed decision. Some banks move before the meeting and some do not move at all.
Should I open a CD before the Fed changes rates?
A CD locks its rate for the full term, so it protects you if rates fall. If rates rise, a CD opened now will pay less than new CDs later. It depends on when you need the money.
When is the next Fed meeting?
Dec 8 to 9, 2026, with the decision announced Dec 9 at 2:00pm ET.
Does the Fed set my bank’s savings rate?
No. The Fed sets the federal funds target range. Each bank sets its own savings and CD rates, though most follow the Fed’s direction.
Compare today’s top savings rates
Happen Bank LevelUp SavingsAPY as of Oct 23, 20264.20%with $250 or more in deposits each monthReview →
