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Key Takeaways
- A second Federal Reserve rate cut is expected this week, and another could follow in December—meaning savings and certificate of deposit (CD) yields will soon start to slip.
- You can offset falling rates by keeping everyday cash in a top high-yield savings account that beats inflation.
- For money you won’t need soon, locking in a top CD rate now can help preserve today’s unusually strong returns.
The full article continues below these offers from our partners.
What This Week’s Fed Decision Could Mean for Your Money
The Federal Reserve is expected to make a second, modest rate cut this week, following its quarter-point reduction in September. Markets are pricing in a 98% chance of another quarter-point move on Wednesday—and a 91% chance of one more cut in December.
This matters to savers because the interest rates banks and credit unions pay on savings accounts and CDs are linked to what the Fed does with its benchmark rate. As a result, deposit yields are likely to drift lower in the months ahead.
But even after several cuts, today’s rates remain attractive by historical standards, since the central bank pushed its rate to a 23-year high in 2023 and held it there for 14 months. That sent savings and CD yields to record levels—some topping 6%. Even now, it’s still easy to earn returns above 4%.
While you can’t avoid lower yields ahead, you can take steps now—and build smart habits going forward—to make sure your money still works as hard as possible, especially while banks are still offering some of the best returns seen in years.
Why This Matters for You
With another Fed rate cut expected this week, the window to snag one of today’s top CD returns is closing. But even cash you want to keep easily accessible should be working for you in a high-yield account that keeps pace with inflation.
As Savings Rates Drop, These 2 Simple Habits Can Help Maximize Your Earnings
The rates banks pay on high-yield savings accounts closely track Fed moves. With one or more cuts still expected this year, most savings rates will drift lower. How fast savings rates decline depends on the institution: Some will slash your yield in one step, while others will trim it gradually over time.
Unfortunately, you can’t stop your rate from falling. Savings accounts are variable-rate products, and banks can adjust the annual percentage yield (APY) at any time—without notice.
But two smart habits can help you maximize what you’ll earn, no matter what happens with broader interest rates.
- Habit #1: Regularly check your savings account APY. Your current rate usually appears in online banking or your app, often under “Account Details.” It may also show on your statement—or you can call or chat with the bank to confirm. Staying on top of your APY ensures you’re not months behind on a big drop.
- Habit #2: Shop the market if your rate falls hard. If your bank drastically reduces your APY, switching banks could mean earning more elsewhere. Our daily ranking of the top high-yield savings accounts makes comparing easy. And with electronic transfers, moving funds from your account to a new bank is generally straightforward.
These two habits can help you make the most of falling savings rates, but to help ensure you hold onto today’s great rates, you’ll want a different kind of account.
One More Strategy to Level Up Your Earnings: Lock In a High APY While You Still Can
When APYs are high and you want to secure them for the future, CDs are a good tool to use. The rate you sign up for is guaranteed for the CD’s full term—whether that’s a short 3 months or a lengthy 5 years. No matter how far or fast the Fed lowers its rate, your CD rate won’t change.
With a Fed rate cut expected this week, time is short if you want to capture today’s top yields. Our ranking of the best nationwide CDs highlights 11 options paying 4.30% to 4.40% on terms from 3 to 12 months, with many others offering 4.25%. You can also explore our term-by-term rankings for more choices, especially if you want a longer rate guarantee.
Just choose your CD term carefully, as you’ll be hit with an early-withdrawal penalty if you opt to cash out early. It’s also smart to maintain a reserve in a high-yield savings account, since keeping a flexible cash cushion ensures you can cover surprise expenses without breaking your CD.
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 much different than 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.
