3 savings moves to make post-Fed rate hike

Savers on Thursday woke up to a new financial climate marked by the first interest rate hike from the Federal Reserve in more than three years. Now at a range between 3.75% and 4.00%, a new, higher federal funds rate is expected to lead to even higher rates for savers than they've already been accustomed to in recent years. And while that change will look different based on the account type and the bank in question, savers are undoubtedly now entering a more profitable period, especially if the Fed proceeds with another interest rate hike when it meets again in October.

Taking advantage of new, better interest-earning opportunities will take a bit of a strategic approach from savers, however. While there are always costly mistakes worth avoiding, making the right, proactive moves now could be the difference between earning a standard rate on your money or one that's exponentially higher. And these moves should happen relatively quickly, both to boost your savings as much as possible and to cut losses you may already be enduring with other account types. Below, we'll break down three specific savings moves to make now, post-Fed rate hike.

Start by seeing how much interest you could be earning with a CD account here.

3 savings moves to make post-Fed rate hike

To position yourself for savings success as quickly as possible, consider making these three moves right now:

Move the money you need to maintain access to into a high-yield savings account

Traditional savings accounts should have been closed already, but if you haven't yet done so, consider acting now. With an average interest rate of just 0.38% currently, you're essentially losing money by not shifting your funds into an alternative account type. Move the money you need to maintain access to, then, into a high-yield savings account instead. These accounts operate the same way a traditional account does, albeit with significantly more interest earnings to be had. 

And you won't have to worry about making withdrawals, deposits or paying any fees the way you would with a certificate of deposit (CD) account with a fixed rate. With a variable rate structure, too, they're well-positioned to take advantage of a rising interest rate environment if the Fed continues to hike rates. Consider shopping around for high-yield savings accounts online, then, and move the money you need to keep flexible into the most profitable option you can find right away.

Get started with a high-yield savings account online now.

Use CDs, but in a more cautious way than usual

Technically, CDs have slightly higher rates than high-yield savings accounts do. And they're fixed, adding a layer of protection that the variable-rate high-yield account can't offer. Because your money will be locked in the account at that fixed rate level, however, your interest-earning potential will be limited. 

This doesn't mean that CD accounts aren't still worth opening (they are), but it does mean that savers should use them in a more cautious way than usual, especially compared to the climate in which interest rates were consistently declining in 2024 and 2025. So open a CD account, but don't deposit more than you can afford to part with, and don't lock it into a term that you can't easily see through to the maturity date.

Explore alternative accounts that can help you take advantage of a higher rate climate

CDs and high-yield savings accounts may be ubiquitous, but they're not the only accounts that will help you take advantage of a higher interest rate climate. A money market account functions as a savings account that you can write checks from and, right now, interest rates on the account are averaging only slightly below those tied to high-yield savings accounts. 

So, if you want to earn a high rate while streamlining your banking needs, this could be the right account for you now. High-yield checking accounts, meanwhile, should also be considered as they can allow you to earn a competitive rate on the money you already have sitting idle waiting for the next bill to be paid. Earning some extra interest there, too, won't hurt.

The bottom line

A rising interest rate environment isn't great news for borrowers, but it does have a silver lining for savers who position themselves appropriately now. By moving the money you need access to into a high-yield savings account, closing the traditional account (if you still have one), using CDs in a more cautious way, and exploring alternative account types that you may not have thought about previously, you can do just that. Consider the use, too, of online marketplaces that list all of the relevant account information you'll need in one spot and don't discount the benefits of speaking with banks directly as they can often outline accounts and approaches that may align with your unique financial circumstances.