The Fed raised rates. Maximize your savings with these CDs, savings accounts and more

As expected, the Federal Reserve raised the federal funds rate at its Sept. 16 meeting, moving the benchmark 25 basis points to a range of 3.75% to 4.00%.

It's the first hike since July 2023, when the central bank increased by a quarter of a percentage point to a range of 5.25% to 5.50%, a 22-year high.

When the Federal Reserve raises the federal funds rate, other short-term interest rates typically rise as well, which can increase funding costs for financial institutions. As a result, many banks and credit unions raise the annual percentage yields (APY) they pay out on deposits to attract or retain customers.

"A Fed rate hike doesn't automatically mean consumers should start moving everything," Cristian Mundy, senior wealth manager at LifeLine Financial Group in Los Angeles, told CNBC Select. "But it's a reminder to check whether your money is working as hard as it reasonably can."

Mundy compares the current rate environment to an exercise program.

"You don't change your entire workout because of one day's weigh-in," he said. "You look at your goals, measure where you are today and make adjustments as necessary. Consumers should approach interest rates the same way."

Some of the best high-yield savings accounts already had APYs above 4% before the Fed hike. To attract new deposits, banks may increase the return on their HYSAs now that the fed funds rate has ticked up.

"A high-yield savings account is great for short-term needs, because it can provide competitive yields while maintaining liquidity," Mundy said. The same is true of money market accounts (MMAs), which are more likely to come with an ATM or debit card.

If you already have an HYSA or MMA, it could be time to look at moving your money into a new account.

"Check what your cash is actually earning when rates rise, rather than assuming your bank has adjusted it for you," Mundy said. 

As of Sept. 16, the Axos ONE Savings account is offering a 4.21% APY if you receive at least $1,500 in qualifying monthly direct deposits and maintain an average daily balance of $1,500 in a linked Axos ONE Checking account. Customers enjoy access to over 95,000 fee-free ATMs nationwide, plus no overdraft fees and can get their paycheck up to two days early.

If you don't want to jump through so many hoops, Happen Bank's LevelUp Savings account currently offers a 4.00% APY when you make monthly deposits of just $250.

APYs on certificates of deposit (CDs) also tend to tick up when the Fed increases its benchmark rate. But the change isn't immediate: To stay competitive, online banks and credit unions usually adjust their CD yields within one to three weeks of a Fed announcement.

Traditional banks may take up to two months to adjust. They may also keep their APY static, because they rely more on existing customer loyalty rather than drawing new customers with top-tier yields.

Because traditional CDs lock rates in until maturity, choosing when to open an account is critical. Many economists predict at least one more rate hike within the next 12 months so it could be worth waiting before locking your money up for months or years.

At the same time, banks don't have to wait for the Fed to make a move. They may adjust rates preemptively if a hike is widely anticipated.

If you're worried about CD yields climbing even further, a bump-up CD allows you to manually request a higher rate if market rates rise. Only a limited number of institutions offer bump-up CDs, including Synchrony Bank, which allows savers to boost their rate once on its two-year CD, and Marcus by Goldman Sachs, which allows savers one increase on its 20-month bump-up CD, which has a $500 minimum opening deposit.

When deciding where to open a bump-up CD, compare the initial APY, maturity term, the number and frequency of increases allowed, any minimum deposit requirements and penalties for early withdrawals.

If you're debating between a CD and a high-yield savings account, it comes down to whether you think you'll need access to those funds.

"An extra fraction of a percentage point isn't worth sacrificing liquidity you actually need," Mundy said. "The highest advertised rate isn't necessarily the best choice if you can't access the money when you need it."

Treasury securities are issued by the U.S. government and come in a wide range of terms: Treasury bills mature within one year, while Treasury notes have terms between two and ten years. Treasury bonds have longer maturities, up to 20 or 30 years.

When market interest rates rise following a federal funds rate increase, yields on newly issued Treasury securities generally rise as well. That can make them more attractive during a tightening cycle and, unlike CDs, income from Treasuries is exempt from state and local income taxes.

Existing Treasuries with lower fixed rates can lose value, however. So the benefit is greater if you're buying newly issued Treasuries rather than selling older ones.

You can purchase U.S. Treasury bills and bonds directly from the government on the TreasuryDirect website with only a $100 minimum.

Major brokerage firms like Fidelity and Charles Schwab also sell Treasuries. While they can have higher minimum purchase amounts, buying from a broker can provide better liquidity, because you can easily sell it on the secondary market before maturity. Selling via TreasuryDirect can involve complicated transfer paperwork and requires a mandatory 45-day holding period.

Brokers also allow investors to hold Treasuries directly within tax-advantaged retirement accounts, such as IRAs, and manage them alongside existing stocks, bonds and other investments.

At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Cristian Mundy, senior wealth manager at LifeLine Financial Group.

Previously, Cristian worked as a private client advisor at J.P. Morgan Chase. He received a bachelor's in business administration from the University of Arizona and Certified Financial Planner certification (CFP) from Pepperdine University's Graziadio Business School.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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