Published October 1, 2026.
The Federal Reserve raised interest rates on September 16, 2026, in a unanimous 12-0 vote. The federal funds target range moved up 25 basis points, from 3.50%–3.75% to 3.75%–4.00%, effective September 17, 2026. It was the first Fed rate hike since July 2023.
This article explains what happened, what the Fed says it plans next, and what high-yield savings accounts were paying at the end of September 2026.
The Federal Open Market Committee voted unanimously, 12-0, to lift the federal funds target range to 3.75%–4.00%. Alongside it, the Board of Governors raised the interest on reserve balances to 3.90% and the primary credit rate to 4.0%, also effective September 17.
Fed Chair Kevin Warsh, who took office on May 22, 2026, succeeding Jerome Powell after being nominated by President Trump, said the move “will support a timelier return to the Committee’s 2% goal.” He added: “This Committee will deliver price stability.”
Ahead of the meeting, the 10-year Treasury yield had climbed above 5%, a sign that bond markets were already pricing in tighter policy.
The Summary of Economic Projections released with the decision showed the median policymaker expects the federal funds rate to end 2026 at 4.1%, up from the 3.8% median projected in June. A large majority of officials favor at least one more rate increase this year.
The September projections also show:
The takeaway: the Fed expects inflation to run well above its 2% target through the end of the year and sees rates staying higher for longer. For savers, that is good news. For borrowers, it is the opposite.
The Wall Street Journal’s Buyside section published a roundup of the top high-yield savings account APYs on September 30, 2026. The highest advertised rates:
| Account | APY | Notable terms |
|---|---|---|
| GO2bank | up to 4.50% | On balances up to $5,000 |
| St. Mary's Credit Union | up to 4.50% | On balances up to $50,000 |
| Elevault | 4.34% | No minimum balance |
| Abound Credit Union | up to 4.25% | On balances up to $25,000 |
| Axos Bank | 4.21% | — |
| Newtek Bank | 4.20% | $100 to open |
| Pibank | 4.10% | — |
Table: APYs reported by WSJ Buyside, September 30, 2026.
WSJ framed the rate picture as improving for savers after the September hike.
Two benchmarks put these rates in context. The FDIC’s average national savings rate stood at 0.38% — roughly one-tenth of the top advertised yields. Separately, DepositAccounts.com reported that the top 1% of savings accounts averaged 3.95% APY. Several of the accounts in WSJ’s September 30 roundup beat that top-1% average.
The highest APYs are often capped. GO2bank’s 4.50% applies only to balances up to $5,000. St. Mary’s Credit Union pays 4.50% up to $50,000. Abound Credit Union caps its 4.25% tier at $25,000. If your balance is larger, the blended rate falls.
Elevault’s 4.34% with no minimum and no cap is notable for savers who want simplicity. Newtek Bank’s 4.20% requires only $100 to open.
Credit union accounts typically require membership eligibility and may have geographic or membership restrictions. APYs are variable and can change at any time, especially if the Fed’s projected additional 2026 hikes do not materialize.
This article is for informational purposes only and is not financial advice. APYs are variable and were reported on the dates shown.
The FOMC voted on September 16, 2026, to raise the federal funds target range by 25 basis points to 3.75%–4.00%, effective September 17, 2026. It was the first hike since July 2023.
The target range is 3.75%–4.00%. The Fed also raised the interest on reserve balances to 3.90% and the primary credit rate to 4.0%, both effective September 17, 2026.
According to the September Summary of Economic Projections, a large majority of FOMC officials favor at least one more rate increase this year, and the median end-2026 projection for the fed funds rate is 4.1%, up from 3.8% in June.
WSJ Buyside reported on September 30, 2026, that GO2bank and St. Mary's Credit Union both offered 4.50% APY, with balance caps ($5,000 at GO2bank, $50,000 at St. Mary's). Elevault offered 4.34% with no minimum balance.
The FDIC's average savings rate was 0.38% at the time of WSJ's September 30, 2026 roundup — the top advertised APYs were roughly ten times higher. DepositAccounts.com put the top-1% average at 3.95% APY.