High-Yield Cash Options Outperform as Fed Cuts Rates

Savers continue to reap strong returns on cash holdings despite the Federal Reserve's recent quarter-point rate cut. Top high-yield savings and money market accounts still offer up to 5.00% APY, with CDs peaking at 4.60% after a limited 5.50% offer expired.

The Fed's projected additional half-point reduction before year-end signals potential volatility in deposit rates. Brokerage cash accounts and U.S. Treasuries remain competitive, yielding up to 4.08% and 4.77% respectively.

With yields likely to compress further, this window of elevated returns presents a strategic opportunity for cash deployment. The divergence between traditional savings products and crypto yields—where staking rewards often exceed 5% on major assets—highlights shifting paradigms in yield generation.