See where savings APYs are heading in 2026, what’s driving changes, and how to keep your cash earning competitive interest.
January 11, 2026
In the past few years, consumers benefited from unusually strong savings yields as the Federal Reserve raised interest rates to fight inflation. Now, the rate environment has cooled. As of the start of 2026, the Fed’s federal funds target range is 3.50% to 3.75%, and savings account APYs are adjusting to match the new reality.
That said, “savings rates” can mean very different things depending on where you look. The national average (dominated by large traditional banks) remains low, while competitive online banks and fintechs often offer much higher yields.
Savings rates are likely to stay relatively the same or go slightly lower as the Fed fights inflation and tries to stabilize the economy.
Read on to learn more about the savings rate forecast for 2026, how it may affect your finances, and how you can save effectively as rates change.
Banks set savings APYs based on several factors, including:
Federal Reserve policy: When the Fed raises or lowers its target range, savings APYs often follow over time.
Competition for deposits: Banks that want more deposits may keep APYs higher than peers.
Timing and expectations: Banks can adjust savings rates ahead of a Fed move if they anticipate where rates are headed.
Important: Savings APYs are not “set” by the Fed. They are bank products. Two banks can react to the same Fed environment very differently.
Savings rates are lower than the peak levels seen during the 2022 to 2023 hiking cycle, but they remain meaningfully higher than pre-hike norms.
Here are three quick reference points:
Fed target range (policy backdrop): 3.50% to 3.75% as of Jan 10, 2026.
FDIC national savings rate (broad average): 0.39% in Dec 2025.
High-yield savings (competitive offers): up to ~5.00% APY as of Dec 31, 2025 (varies by institution and can change quickly).
Why the gap matters: The FDIC national rate is a broad benchmark, but many consumers can earn more by choosing a competitive high-yield account.
The FDIC national savings rate drifted in a narrow band through most of 2025 and ended the year at 0.39%.
| Month | Rate |
|---|---|
| January | 0.41% |
| February | 0.41% |
| March | 0.41% |
| April | 0.41% |
| May | 0.42% |
| June | 0.38% |
| July | 0.38% |
| August | 0.39% |
| September | 0.40% |
| October | 0.40% |
| November | 0.40% |
| December | 0.39% |
As we look beyond, the trajectory of savings rates will largely depend on how the Fed responds to changing economic conditions.
Savings APYs in 2026 will largely depend on whether inflation continues easing and how the Fed responds.
If inflation cools and growth slows, the Fed may cut rates further, and savings APYs could decline gradually.
If inflation stays sticky, savings rates may hold steadier.
If banks compete aggressively for deposits, some high-yield accounts may stay elevated even in a lower-rate environment.
Consumers keeping an eye on rates should follow the Federal Open Market Committee (FOMC) for updates on the federal funds rates and other predictions.
The Fed’s 2026 meetings (policy decisions typically released at the end of each meeting) are scheduled for:
Jan 27 to 28
Mar 17 to 18 (includes projections)
Apr 28 to 29
Jun 16 to 17 (includes projections)
Jul 28 to 29
Sep 15 to 16 (includes projections)
Oct 27 to 28
Dec 8 to 9 (includes projections)
Keep emergency savings liquid in a high-yield savings account.
The “best” rate is not helpful if your emergency fund is hard to access.
Consider a CD ladder if you want to lock a rate without locking all your cash.
Example: split funds across 3-, 6-, and 12-month CDs so you have money coming available on a schedule.
Check your APY periodically (quarterly is enough for most people).
If your bank quietly lowers rates, you can compare other options.
Match the tool to the goal.
Short-term goals: savings, CDs, money market options
Longer-term goals: diversified investing (based on risk tolerance and time horizon)
“At this point, we can expect that rates will continue to remain higher for longer, increasing the attractiveness of CDs and money market funds,” said Petitjean.
Other tips for maximizing your savings in 2026 include:
They can, especially if Fed cuts continue. But banks do not move in lockstep. Some top accounts were still advertised at up to ~5.00% APY in late Dec 2025, showing competition can keep offers elevated.
The FDIC national average reflects rates across many institutions, including large traditional banks that often pay low yields. In Dec 2025, the FDIC national savings rate was 0.39%, while competitive online banks can offer much higher APYs.
CD rates often move in the same direction as the Fed’s benchmark over time. If rates trend down, CDs may also drift lower, which is why some savers consider locking in terms via a ladder.
Emily Sherman is a personal finance expert at BestMoney.com, specializing in online banking. Her work has appeared in U.S. News & World Report, Buy Side from the Wall Street Journal, Newsweek, and more. As a veteran journalist, Emily leverages her expertise to help readers make informed financial decisions.