Why Your Savings Account Rate Goes Up (Or Down)

Hey there,

Ever wonder why your savings account rate suddenly jumps, or drops for no clear reason?

It’s not your bank just messing with you. There’s a method behind the madness. And it all starts with the Federal Reserve.

Here’s what’s happening behind the scenes:

✅ The Fed sets the tone. When it raises interest rates (as it has done aggressively the past two years), banks usually follow suit. That means better returns on your savings…eventually.

✅ Inflation matters. Higher inflation often leads the Fed to raise rates to cool down spending. That can boost your bank’s rates. But when inflation drops, so do the odds of earning more on your money.

✅ Banks play the supply-and-demand game. If they need more deposits, they’ll offer higher yields. If they’re already sitting on cash? Don’t expect much.

✅ The economy’s health impacts everything. Booming economy? Higher rates. Slowing growth? Expect them to fall.

Why it matters:
If you’re stashing money in a savings account, your rate is being shaped by forces much bigger than your bank. But knowing what’s driving those changes can help you stay ahead and earn more.

A smart move right now 💡
SoFi is currently offering one of the most competitive high-yield savings accounts in the country—plus a $300 bonus for new depositors.

📈 up to 4.00% APY (this includes a 0.20% bonus when you sign up before 8/12/25)
💰 Up to a $300 bonus
✅ FDIC insured

If your current bank is still paying you pennies, this is one of the best places to put your cash to work right now.

👉 Claim the $300 bonus here »

We’ll keep tracking the latest rate moves and money-saving opportunities so you don’t have to.

Until next time,

-Sean
Founder, One Smart Dollar
Publisher of The Banking Edge

P.S. Know someone who’s still earning 0.01% on their savings? Forward this email, they’ll thank you later.