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Key Takeaways
- The Fed is likely to cut interest rates next week, which would push savings, money market, and CD yields lower.
- Opening a top nationwide CD now lets you lock in one of today’s 4%-plus rates, guaranteeing your return for months or years, despite Fed cuts.
- For cash you want to keep flexible, top high-yield savings accounts still pay in the 4% to 5% range, but those rates are expected to slip.
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A Fed Rate Cut Is Likely Next Week—Here’s How It Could Hit Your Savings
The Federal Reserve meets next week, and financial markets widely expect the central bankers to announce another quarter-point rate cut on Wednesday. That would follow a similar move in September—the first cut of 2025.
For savers, this matters—since banks’ savings yields generally move in step with the Fed’s benchmark rate. That rate is still relatively high, which is why today’s 4% to 5% savings returns remain strong. But with one or more Fed cuts ahead, those highs will start to slip—making now a smart time to lock in a top rate before it’s gone.
Why This Matters for You
As the Fed prepares to cut rates, today’s top savings and CD yields won’t last. Acting now can help you lock in stronger returns before rates start to fall.
CDs Let You Lock In Today’s High Yields Before They Start To Fall
With rates expected to fall, now’s a smart time to open a certificate of deposit (CD). Unlike savings or checking accounts, where yields can drop at any time, a CD locks in your rate until maturity. If you can set aside money for a few months, a year, or more, CDs let you secure today’s higher returns before the Fed’s next moves push them lower.
Right now, the best CD rates range from about 4.30% to 4.45% on shorter terms of 3 to 13 months. The top mid-range CDs—those lasting 18 months to 3 years—let you lock in 4.20% to 4.25%, while longer-term CDs offer a 4- to 5-year rate lock in the low 4% range. Check out our daily rankings of the best CDs to see where yields stand today.
Just be sure to match your CD to your timeline. Withdraw before maturity and you’ll face an early withdrawal penalty. And always keep some cash accessible for emergencies so you’re not forced to tap your CD early.
Your Cash Can Still Earn up to 5%—But the Clock Is Ticking
For cash you want to keep accessible—whether alongside or instead of a CD—it still pays to earn a strong return. The FDIC’s national average savings rate is just 0.40%, and some of the biggest banks—like Chase, Bank of America, and Wells Fargo—pay close to zero. In contrast, top high-yield options offer APYs that are 10 to 13 times higher.
Right now, the top high-yield savings accounts pay as much as 5.00% APY. While that top rate requires meeting some conditions, our daily ranking of the best accounts includes more than a dozen paying above 4.25%, many with no strings attached.
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.
