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The Fed Increased Interest Rates in September - But Most People Aren't Taking Advantage of This Key Benefit

The Fed's move only helps if your own account pays more, so here's how to check your APY and decide which cash to move.

By Laura Hohenstein , Edited by Melinda Sineriz, ABFP®

Updated Oct. 22, 2026

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$25,000 at 4.00% annual percentage yield (APY) earns about $1,000 over one year, or roughly $83 a month.
The same $25,000 in a traditional savings account paying 0.38% APY earns around $95 in one year, or about $8 a month.
That almost $900 gap is the reward for moving suitable cash into a higher-paying savings account while keeping rent money where you need it.
At the national average savings rate of 0.38% (as of 06/15/26), $20,000 earns $76 a year. The same balance could earn up to nine times more with a SoFi Checking and Savings account. See SoFi®'s current rate.

Your savings account might feel like one of those set-it-and-forget-it things. Once money lands there, it feels safe, boring, and handled, and that's exactly how savings should feel. But boring gets expensive when the account barely pays you.

The September Fed headline matters because higher rates can create better income on cash. The catch is that the benefit has to show up in your account's annual percentage yield, or APY, before the Fed's move does anything useful for your balance.

If your savings is sitting at a sleepy rate, a high-yield savings account might turn the same balance into more interest without locking up your money. So start by checking your current APY, then sort which dollars belong in high-yield savings.

Higher rates can boost cash

After the Fed's September 16, 2026, rate increase of 25 basis points to a target range of 3.75% to 4.00%, borrowing costs got the attention. Your cash deserves a look, too, because higher rates can make savings accounts more rewarding.

The Fed doesn't pay interest into your account. Banks and credit unions decide what they pay depositors, and some high-yield savings accounts are still paying around 4.00% APY. That's the benefit in the Fed story: Your savings could earn more if your own account pays a stronger yield.

Your account may not follow

Here's where the chain can break. A rate increase by the Fed changes the backdrop for banks and credit unions, but it doesn't force your current savings account to pay you more.

That matters if you opened an account years ago and never looked back. Older savings accounts can stay uncompetitive if their rates lag newer high-yield savings options. The account can keep doing its job while earning far less than you might find elsewhere.

So don't assume your balance benefited just because the Fed moved. Your account's APY is the receipt.

We did the research for you. Having your checking and savings accounts with the same financial institution can make money management a lot simpler. SoFi® was our 2026 award winner for Best Checking and Savings Combo because it delivers on interest and additional features.

For example, you could earn up to 4.40% APY on your savings balance with direct deposit. (3.30% APY¹ with +1.10% APY Boost) for up to 6 months on new accounts.²

SoFi also offers more special features than any other account combo we looked at: No account fees: No overdraft fees.³ No minimum balance fees. No monthly fees.⁴ Get paid up to two days early: Feel the magic of payday up to two days earlier — automatically — when you set up direct deposit.⁵ Access additional FDIC insurance up to $3M: Typically, single-member deposit accounts are federally insured up to $250,000. With SoFi, FDIC insurance up to $3 million on deposits is available through a seamless network of participating banks.⁶

Open an account with SoFi here.

Check your APY in minutes

You don't need a spreadsheet or a weekend project to find your current rate. If your institution provides periodic statements, your statements can include interest earned and APY earned, which gives you a useful place to start.

Try these places first:

Open online banking and look for account details or rate information.
Check the latest monthly statement for an interest summary.
Look at recent interest paid, then compare it with the account's listed APY.

Once you have your current APY, compare it with the current high-yield savings market, where around 4.00% APY (as of 10/01/26) is reachable. If your savings account is paying far below that, the Fed's rate move could be helping the financial system more than it's helping your money.

Your money is already saved. Now see how it could be earning you hundreds per year.

What $25,000 could earn

The math is what makes this worth checking. Say you have $25,000 in a high-yield savings account paying 4.00% APY for one year, a rate that's reachable in the current high-yield savings market.

$25,000 × 0.04 = $1,000

Using a one-year APY estimate, that $25,000 earns about $1,000. That's about $83 a month for money you were already keeping in cash.

A smaller balance still earns something, just less dramatically. At 4.00% APY for one year, $500 earns about $20. That won't change your life, but it proves the same point: The rate matters most when you apply it to the dollars you already have.

If you have	One year at 0.38% APY (national average)	One year at 3.80% APY (example)	You are leaving behind
$10,000	$38	$380	$342
$25,000	$95	$950	$855
$40,000	$152	$1,520	$1,368
$50,000	$190	$1,900	$1,710
$100,000	$380	$3,800	$3,420

Move the right cash only

A high-yield savings account works best for money that needs safety and access without constant spending access. The category is useful because your money stays separate from checking while still being reachable when you need it.

Sort your cash this way:

Money needed before the end of the month belongs where bills get paid, which is usually checking.
Emergency savings can fit well in high-yield savings if you can transfer money when a real emergency hits.
Near-term goals, such as a car repair fund or vacation money, are strong candidates because you want growth without locking up the money.
Cash already committed to a home closing, tuition bill, or other dated payment should stay wherever access is simplest and timing is safest.
Money you won't need for five years or more might be too long-term for a savings account, and that calls for a different conversation.

That sorting step keeps the decision practical. You're looking for cash with room to earn more, not cash that's already promised to someone else.

The transfer has tradeoffs

Moving money between institutions usually isn't instant. External transfers commonly move through ACH, and you should check the timing against the typical one- to three-business-day ACH transfer window before you move money you might need this week.

Emergency access also depends on the account's tools. Some accounts let you transfer back to checking, use an ATM card, or move funds to a linked account, while others rely mostly on electronic transfers. That doesn't make high-yield savings a bad fit, but rent money and closing funds need extra care.

Insurance is another box to check. FDIC deposit insurance generally covers up to $250,000 per depositor, per insured bank, per ownership category. Because coverage depends on the institution and ownership setup, the smart move is confirming insurance status and limits before moving a large balance.

Terms matter, too. Check minimum opening deposits, minimum balance rules, monthly charges, transfer options, and how interest is paid.

Saving for a down payment, a wedding, or next April's tax bill? That money could be earning up to 4.40% APY for up to 6 months while it sits.² Earn up to 4.40% Annual Percentage Yield (APY) on one SoFi Savings account with a 1.10% APY Boost (added to the 3.30% APY as of 10/20/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/27. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC.

Bottom line

The Fed's September increase can help your savings only if your own account pays a competitive APY. If $25,000 sits in a high-yield savings account paying 4.00% APY for one year, it earns about $1,000. If that same cash sits in checking at 0.00% APY, it earns nothing.

So check your current APY, then sort your money by job. Keep bill money easy to reach, and consider whether suitable cash could earn more in a high-yield savings account.

Would You Spend Ten Minutes for $1,465?

That's roughly the year's difference on $40,000 between the national average and the up-to-4.00% rates available now. And ten minutes isn't a figure of speech. You just provide some information, like your name, address, Social Security number, and the account your deposit money's coming from. But rates are variable and follow the market, which is why the only number worth acting on is today's. Compare the current top accounts here.

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Open Account on SoFi's secure website, Member FDIC

APY

4.40%

Minimum Balance for APY

Bonus Offer

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Why We Like It

Limited-Time Offer: Earn a $50 or $400 cash bonus¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>. plus a boosted up to 4.40% APY² Earn up to 4.40% Annual Percentage Yield (APY) on one SoFi Savings account with a 1.10% APY Boost (added to the 3.30% APY as of 10/20/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/27. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC. on Savings (3.30% APY¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>. with +1.10% APY Boost) for up to 6 months when you open a new account and set up eligible direct deposits. Terms apply.
No account, overdraft, or monthly fees.⁴ We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a>.
Get your paycheck up to two days early with direct deposit.⁵ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
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