How Often Do HYSA Rates Update? (2026)
| Rate | Level | Source, as of |
|---|---|---|
| Fed funds target range | 3.75-4.00% (raised 0.25 point on 9/16/2026) | federalreserve.gov, FOMC 9/16/2026 |
| Top online HYSAs | 3.00-4.00% | Bank sites 9/24/2026 (Live Oak 4.00% as of 9/8, Sallie Mae 3.85%, Marcus 3.50%, Ally 3.00%) |
| Top 5-year CDs | 4.35-4.50% | DepositAccounts, updated 9/25/2026 |
| A-rated 5-year MYGAs | 5.50-6.05% | public carrier rate sheets, 10/14/2026 |
| FDIC national average savings | 0.37% | FDIC, 9/21/2026 |
Savings account vs MYGA, after tax
What $100,000 earns in 5 years: savings account vs MYGA, after tax
Rates used: Savings account 4.00%, the top online savings rate we tracked (bank sites, September 24, 2026); savings rates can change any day; change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| Savings account, interest taxed every year | $116,604 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the savings account, after tax | $9,531 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
What "variable rate" actually means
When you open an HYSA, the bank pays the APY they're advertising that day. They are not contractually obligated to pay that APY tomorrow, next month, or next year. The account terms typically say something like: "The interest rate may change at any time at the bank's discretion."
This is the fundamental difference between an HYSA (variable) and a CD or MYGA (fixed for term).
How often do top banks actually change rates?
Based on historical patterns 2020-2026:
- Marcus by Goldman Sachs: Changes 6-10x/year, usually within 7-14 days of an FOMC decision
- Ally Bank: Changes 6-10x/year, typically within 1-2 weeks of Fed moves
- SoFi: Changes 8-12x/year, more reactive than peers
- Discover: Changes 4-8x/year, tends to be slower to follow Fed cuts
- American Express: Changes 4-8x/year, similar to Discover
- Synchrony: Changes 6-10x/year
- Capital One 360: Changes 4-8x/year, slower, larger steps
The pattern: banks tend to raise rates fast (to attract deposits when the Fed hikes) and lower rates fast too (to protect margins when the Fed cuts). Lag is typically 7-14 days from the FOMC announcement.
What drives the rate changes
- Federal Reserve policy: when the Fed Funds rate moves, HYSA APYs move within 1-2 weeks. Fed Funds at 5.50% in 2023-2024 = HYSAs at ~4.50-5.30%. Fed Funds cut to 4.50% in 2024-2025 = HYSAs dropped to ~4.10-4.65%.
- Competitive dynamics: if SoFi raises to 4.80% and Marcus stays at 4.40%, Marcus loses deposits. Marcus will often respond within a few weeks.
- The bank's deposit needs: if a bank wants to grow deposits to fund lending, they raise APYs. If they're flush, they let APYs drift down.
- Market funding costs: when bond yields rise, banks can afford to pay more on deposits.
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
We’ll email you when a rate on this page changes. Hans Goldstein · NPN 20602398.
Rather talk it through? Or book 15 minutes on Hans’s calendar.
The 2022-2026 rate history (real data)
| Date | Fed Funds Rate | Top Online HYSA APY |
|---|---|---|
| Jan 2022 | 0.25% | 0.50-0.60% |
| Jul 2022 | 2.50% | 1.50-2.10% |
| Jan 2023 | 4.50% | 3.30-3.75% |
| Jul 2023 | 5.50% | 4.30-4.85% |
| Jan 2024 | 5.50% | 4.50-5.30% |
| Sep 2024 | 5.00% | 4.40-5.00% |
| Jan 2025 | 4.50% | 4.10-4.70% |
| Sep 2026 | 3.75-4.00% (after a 0.25-point hike on 9/16) | 3.00-4.00% (bank sites, 9/24) |
The lesson: HYSA APYs went from 0.50% to 5.30% to roughly 3.00-4.00% by September 2026. You can't plan around a variable rate. You can only plan around the current rate and accept rate risk.
How banks notify you of rate changes
- Most banks: silently. The new APY just appears on the next monthly statement.
- A few banks send an email when the rate changes, usually for cuts, sometimes for increases.
- Promo-rate banks send notification when the intro APY ends (e.g., "your 5.50% intro rate ends next month, then drops to standard 3.50%"). Top online banks rarely use promo structures.
You can track APY changes manually: bookmark the bank's rate page, check monthly. Or check sites like Bankrate, NerdWallet, DepositAccounts.com that aggregate online HYSA rates weekly.
"Why doesn't the bank guarantee my rate?"
Because the bank funds your interest payments out of its lending margin. A bank lends your $100K out as a mortgage at, say, 7%. If they pay you 4.5%, they keep 2.5% margin. When the Fed cuts and the bank's lending yields drop to 6%, they cut your APY to 3.5% to maintain margin. They literally can't guarantee a rate they don't know they can fund 5 years out.
Insurance carriers funding MYGAs solve this differently: they invest the premium in long-duration corporate bonds (5-10 year maturities) at fixed yields, then pay you a fixed APY backed by that bond's coupon. They can guarantee a 5-year rate because they bought the matching 5-year bond.
What this means for your money
- Emergency fund + 0-24 month cash: HYSA is the right tool. Variable rate doesn't matter much over short periods.
- 3-10 year cash (parked): Variable rate is a real risk. A 1% rate cut on $100K = $1,000/year. A locked 5-year MYGA (5.50-6.05% from A-rated carriers on October 14, 2026, per public carrier rate sheets) removes this risk.
- 10+ year retirement money: Neither HYSA nor MYGA is the right tool. Use diversified retirement accounts.
Frequently Asked Questions
Does the Fed directly set HYSA rates?
No. The Federal Reserve sets the Fed Funds rate (overnight bank-to-bank lending). HYSA rates are set by each bank independently, but they track Fed Funds closely. When the Fed cut its target from 5.25-5.50% to 3.50-3.75% between September 2024 and December 2025, top HYSAs fell from about 5.30%; on September 24, 2026 top online HYSAs paid 3.00-4.00% (bank sites), even after the Fed raised its target to 3.75-4.00% on September 16, 2026.
Will my HYSA rate drop tomorrow?
It could. Variable rate accounts can change at any time without notice. Historically, top online banks change rates 4-12 times per year, usually within 1-2 weeks of a Fed decision. The next FOMC meeting is the best signal for near-term rate moves.
Is there an HYSA that locks the rate?
No. By definition, an HYSA is variable. The fixed-rate equivalents are: (1) CDs, locked for term (3 mo to 5 yr typical); (2) Treasury bills, fixed yield, term-locked; (3) MYGAs, locked for 3-10 years, insurance contract from carrier.
How quickly do banks raise rates when the Fed hikes?
Top online banks usually raise APYs within 7-14 days of a Fed hike. Big brick-and-mortar banks (Chase, BoA, Wells) often don't raise savings APYs at all, they keep them at 0.01-0.05%. The whole online HYSA market exists because brick-and-mortar banks don't pass Fed hikes to savers.
Why is my HYSA APY lower this month than last month?
Either the Fed cut, or your bank cut to match peers, or you fell below a minimum-balance APY tier. Check the bank's current rate page and verify your balance is above any tier threshold. If both check out, the bank just cut, this is normal for a variable rate account.
Do credit unions update rates faster or slower than banks?
Credit unions typically update less frequently (2-6x/year) and tend to move slower in both directions. Top credit union savings APYs are sometimes higher than top bank HYSAs, but the gap closes within 1-2 months of major Fed moves.
How can I lock a savings rate for 5 years?
You can't, not at an HYSA. To lock a rate for 5 years, you need a CD (FDIC-insured; top 5-year CDs paid 4.35-4.50% on DepositAccounts, updated September 25, 2026) or a MYGA (state guaranty association coverage; A-rated 5-year MYGAs paid 5.50-6.05% per public carrier rate sheets on October 14, 2026). On those numbers MYGAs beat top 5-year CDs by about 130-165 bps.
Want a fixed rate locked for 3-10 years instead of a variable HYSA?
Compare your HYSA APY against current MYGA rates, free, independent.
HYSA rates move every month with the Fed. If you want a rate locked for 3, 5, 7, or 10 years on cash you won't touch, a MYGA (multi-year guaranteed annuity) is the closest equivalent. A-rated 5-year MYGAs topped out around 5.50% to 6.05% on October 14, 2026 (public carrier rate sheets), fixed for the term. Tax-deferred. State guaranty fund backed.
Send your details. Within one business day, you'll get current MYGA rates side-by-side with your HYSA, surrender schedules, carrier ratings, and a 15-minute call if you want one.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
We’ll email it to you. Hans replies within one business day. Privacy Policy.
Related reading
This page is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific bank product. APYs change frequently, typically monthly, and the rates shown here are approximations as of the date above. Always confirm current rates and fees directly on the bank's website before opening an account. Hans Goldstein is an independent licensed insurance producer (NPN 20602398); he does not receive compensation from any bank discussed on this page. FDIC insurance limits apply ($250,000 per depositor, per ownership category, per insured bank). Annuity products mentioned on this page are insurance contracts with surrender charges and are regulated by state insurance commissioners; they are not FDIC-insured. Always read the actual contract and consult a licensed advisor before purchasing any annuity product.