The Fed meets eight times a year to assess the health of the US economy and vote on the federal funds rate, the rate banks use to lend and borrow money. While the Fed's decision to change rates doesn't directly affect savings rates, changes in APYs typically follow. The changes can take several weeks or even months to take effect.

Though the top savings account rates are down slightly from the peak they reached in 2024, you can still earn a great return—even protecting you against today's inflation.

Hope that the Federal Reserve would continue its interest rate cut campaign had dimmed toward the end of 2024 as the bank hinted at a slower pace in 2025. And that was made official on Wednesday when the Fed held its first meeting of the year,

The Fed declined Wednesday to lower the interest rate in a move that ends a three-cut run and goes against the direction of President Trump.

The Federal Reserve decided to delay additional rate cuts for now and keep interest rates unchanged at its first meeting of the year, giving themselves time to assess whether inflation is cooling and how President Donald Trump’s policies might impact the U.