Fed holds at 3.75% to 4%: what it means for your credit card, savings and mortgage

What's happened

On October 28, 2026, the Federal Reserve's rate-setting committee kept the federal funds target range at 3.75% to 4%. The vote was 10 to 2. The two dissenters, Lisa D. Cook and Beth M. Hammack, wanted to raise the range by a quarter point.

The statement said "Inflation remains elevated" and that uncertainty "remains elevated owing, in part, to geopolitical developments." It also said the economy "is expanding at a strong pace" and that the unemployment rate "has changed little." The next meeting is December 8 to 9, and it comes with fresh economic projections.

A hold with two votes for a rise doesn't tell you what happens in December. It does mean a cut is not the only option on the table, so it's a sensible week to check what your own debts and savings are costing or earning.

Who's affected

• Credit card and HELOC borrowers. Most card APRs are variable, and many are set as the prime rate plus a margin. The Fed's own data put prime at 7.00% on November 5.
• Savers. Bank savings rates aren't set by the Fed, but they tend to follow it.
• Home buyers and people refinancing. Fixed mortgage rates follow longer-term bond yields more than the Fed's own rate. The 10-year Treasury yield was 4.84% on November 5.

A $5,000 card balance, worked out

The Fed's consumer credit report, published November 6, puts the average APR on credit card accounts that were charged interest at 22.36% in the third quarter of 2026. Across all accounts it was 21.19%.

• One month's interest on $5,000 at 22.36%: $5,000 x 22.36% / 12 = $93.17.
• If you made no payments for a year, monthly compounding would add $1,240.00.
• If the Fed raised rates by a quarter point and your card followed, the APR would be 22.61%. That's $94.21 a month, or $1.04 more.

So a Fed move changes this bill by about a dollar a month. Paying the balance down changes it by far more.

$10,000 in savings, worked out

The FDIC's national average savings rate was 0.38% on October 19, 2026. Over 12 months, $10,000 at 0.38% APY earns $38. At 3.50% APY, the rate Marcus by Goldman Sachs showed for its Online Savings Account on November 8, the same $10,000 earns $350. That's $312 more for moving the money. We compare more banks in our story on savings rates this week.

A $300,000 mortgage, worked out

Freddie Mac's weekly survey had the average 30-year fixed rate at 7.18% on November 5, down from 7.24% a week earlier but up from 6.22% a year ago. The 15-year average was 6.57%.

• $300,000 over 30 years at 7.18%: $2,032.30 a month in principal and interest.
• The same loan at last year's 6.22%: $1,841.30 a month.
• The difference: $191.00 a month, before taxes and insurance.

If you already have a fixed rate, nothing changes for you. Adjustable-rate mortgages and HELOCs reset with their index, so check your loan papers for the next reset date.

What to do now

1. Find your card APR. It's on your statement. Multiply your balance by the APR and divide by 12 to see what a month of interest costs.
2. Pay the highest APR first. Every dollar off a 22% card saves more than a dollar earns in almost any savings account.
3. Move idle cash. If your savings pay close to the 0.38% average, compare online banks before the December meeting.
4. Check any adjustable debt. Look up when your HELOC or ARM rate next resets and what index it follows.
5. Hold off on guessing. Don't time a mortgage on what the Fed might do in December. Compare lender quotes on the same day instead.

Questions

Will my credit card rate change right away? Only if the prime rate moves. With the Fed on hold, prime stayed at 7.00%, so most variable card APRs haven't moved since October 28.

Is now a good time to lock a mortgage rate? Nobody knows where rates go next. The 30-year average has fallen three weeks in a row, Freddie Mac said, but it's still almost a point above last year.

When's the next decision? December 9, at the end of the December 8 to 9 meeting.

Does the Fed set my savings rate? No. Banks set their own, which is why the gap between the 0.38% average and online banks is so wide.

Ways to save

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Sources: Federal Reserve FOMC statement, October 28, 2026, Federal Reserve implementation note, October 28, 2026, Federal Reserve FOMC calendar, checked November 8, 2026, Federal Reserve H.15 selected interest rates, November 6, 2026, Federal Reserve G.19 consumer credit, November 6, 2026, FDIC national rates, October 2026, Freddie Mac PMMS, November 5, 2026, Marcus Online Savings, checked November 8, 2026