Higher rates can be good news for savers — but the best place for your cash depends on when you’ll need it

The Federal Reserve raised its benchmark interest rate on Wednesday, its first rate hike in three years.

A big winner, potentially? Savers. When the Fed raises rates, banks and credit unions typically increase the rates they offer on deposit accounts, including high-yield savings accounts and newly issued CDs. That means savers could have more opportunities to earn a competitive return on their cash.

But the best place to keep your money depends on more than just the highest APY. A high-yield savings account can give you easier access to your cash, while a CD typically requires you to leave your money untouched for a set period in exchange for a fixed rate.

So, which one makes more sense for you? That largely comes down to when you'll actually need your funds.

As the Fed raises its benchmark rate, it's worth observing how high-yield savings accounts react as they're likely to up their rates for savers, too. These accounts already pay a higher return than your traditional savings account, so really they're a good choice in any rate environment. In a rising-rate environment, a high-yield savings account also gives you the ability to withdraw your cash and put it into a higher-yielding account if you find one.

For those who need their money within reach and able to tap at any time (think an emergency fund), a high-yield savings account is a good call. Traditional banks usually have a six-withdrawal monthly limit, while online banks frequently offer unlimited withdrawals.

There are no monthly limits on withdrawals or transfers with the SoFi Checking and Savings* and account holders can get a cash bonus of up to $400 if they set up direct deposit. Plus, the APY is strong. If you'd rather not deal with deposit requirements or minimums at all, EverBank Performance Savings pays a competitive rate with basically no strings attached.

If saving doesn't come naturally to you, Varo has built-in tools that round up your spending or automatically set aside a chunk of your paycheck, so your balance grows without much effort on your end. And if you'd rather stick with a name you trust, Marcus by Goldman Sachs keeps things simple with no fees and no minimums, backed by a well-known bank.

When the Fed raises its benchmark rate, banks tend to increase CD returns for new account holders as well. With a CD, you can lock in a high rate, so if rates fall in a few months, you're already guaranteed that higher rate for the duration of your term.

CD terms can range anywhere from three months to five years, even 10 years with some institutions. You cannot access your funds until maturity. If you pull your money out before the term ends, you'll usually pay an early withdrawal penalty, often a few months' worth of interest.

With CDs, it really comes down to the terms you're looking for, the rates being offered and whether the bank has any specialty CDs that might suit your needs.

Nuvision Credit Union is currently offering a promotional rate up to 5.00% APY, though that top rate is capped at smaller balances. If you want more flexibility without giving up a strong rate, Synchrony Bank is a good choice. It also offers no-penalty CDs alongside its traditional terms, if you're unsure of how long you can lock up your funds. And if you have a larger sum you're ready to commit, Popular Direct offers one of the highest rates on big balances.

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* New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking/checking-offer/ *SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn up to 3.10% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.10% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. *SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC's regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks. *Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at sofi.com/banking#4. SoFi Bank, N.A. Member FDIC. *Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet