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Key Takeaways
- The Federal Reserve is likely to lower interest rates in mid-September, which would be its first cut of the year.
- When the Fed rate changes, bank yields on savings, money markets, and CDs move as well—sometimes even before the central bank’s official announcement.
- That’s why today’s best CDs are worth grabbing, guaranteeing mid-4% returns for months or even years—no matter what cuts the Fed makes.
- For cash you need to keep accessible, you can still earn up to 5% with the best high-yield savings accounts, money markets, and checking accounts. But that rate probably won’t last much longer.
The full article continues below these offers from our partners.
A Fed Rate Cut Could Be Just Weeks Away—Here’s What It Means for Your Money
Financial markets largely expect the Federal Reserve’s hold-tight approach to end soon. The central bank has held rates steady at every meeting this year, but traders now give an 85% chance of a quarter-point cut on Sept. 17.
This matters to savers since bank account yields generally move in step with the Fed’s benchmark rate, which is still near a recent high. That’s why today’s 4% to 5% savings rates remain unusually strong. But with at least one Fed cut likely this year, today’s high returns on cash may soon begin to slip.
Fortunately, there’s still time to earn—and even secure—today’s top rates before they disappear.
Grab a CD to Lock In a Guaranteed High Rate While You Can
When rates are expected to decline, it’s an excellent time to open a CD. You can lock in a rate today that likely won’t be available in the near future. With cuts anticipated this year—and possibly in 2026—it’s smart to consider one or more of today’s best CDs. The top nationwide offer is 4.60% APY, with more than a half-dozen others paying a guaranteed 4.50%.
Unlike savings or checking accounts, where yields can be lowered at any time, the rate you lock in with a CD is yours to keep until maturity. That means if you can set aside some of your savings for a few months, a year, or even longer, today’s CDs can shield your returns from the fallout of Fed rate cuts.
Just be sure to match your CD to your financial timeline, choosing a term you’re confident you can stick to. That’s because you’re committing to the full term in exchange for a CD’s locked-in rate, and you’ll face an early withdrawal penalty if you don’t keep up your end of the bargain.
It’s also smart to keep a cash reserve that you can access at any time. That way, if an unexpected need comes up, you can tap savings first and avoid dipping into your CD before it matures.
Flexible Cash Can Still Earn Up to 5%—But Probably Not for Long
For cash you need to keep handy—either alongside or instead of a CD—it’s still important to earn a strong return. The national average savings rate at Federal Deposit Insurance Corp. (FDIC) banks is just 0.39%, and some of the biggest names, like JPMorgan & Chase & Co. (JPM), Bank of America (BAC), and Wells Fargo (WFC), pay a near-zero 0.01%. By contrast, high-yield options are easy to find at 10 to 13 times the national average.
In fact, dozens of high-yield savings accounts are paying in the mid-4% range, with two options—Varo Bank and AdelFi—offering 5.00% APY. To make the search easier, we publish our ranking of the top high-yield savings accounts every business day.
Prefer to have check-writing access to your savings? A top-paying money market account could be the answer. While many pay less than the top savings accounts, HUSTL Digital Credit Union is matching the 5.00% savings rate—without any balance requirements.
This 5% Checking Account Stands Out
Do you have the ability to set up direct deposits totaling at least $2,000 each month? Then mph.bank’s free checking account is hard to beat. While other high-yield checking accounts require 12 to 15 debit transactions a month to earn a high APY, mph will pay 5.00% every month that you meet its direct deposit requirement.
Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
Important
Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is very different from the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
