Will Your Bank Lower Savings Rates Before or After the Fed Announcement

Banks typically don't wait for official Fed announcements to adjust their savings rates. They often move preemptively based on market expectations and what they anticipate the Fed will do.

Here's the truth: Banks don't wait.

When the Fed signals rate cuts are coming, banks often move preemptively—lowering savings rates before the official announcement to protect their margins.

You might notice your high-yield savings account rate dropping even before the Fed makes its decision official.

But when rates are rising? Banks take their time increasing what they pay you, often waiting until after Fed announcements to adjust upward.

The bottom line: Banks maximize the spread between what they pay depositors and earn on loans. They're not waiting for official announcements to make moves that benefit them.

If you're counting on savings account rates for significant income, monitor Fed commentary and market expectations—not just the announcement dates.

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