Your Window Is Closing Fast—Where to Park Savings Before the Fed Drops the Hammer

Fed's next move could slam traditional savings—while crypto quietly positions for another breakout.

Ditch the 0.01% APY

Banks offer scraps while inflation chews through cash. Bitcoin’s up over 120% this year—Ethereum isn’t far behind. Stablecoins now yield more than most high-yield savings accounts, without the withdrawal limits or middlemen.

DeFi eats their lunch

Why beg for rate crumbs when decentralized protocols automate yield? Compound, Aave, and Uniswap V3 let you earn on deposits, liquidity provisions, and even idle NFTs. No branch hours, no paperwork—just code that pays.

Hedging the inevitable pivot

When the Fed finally cuts, fiat weakens. Crypto isn’t waiting—institutional inflows hit $12B last quarter. BlackRock’s IBIT and Fidelity’s FBTC keep sucking capital from legacy markets. Gold’s old news; digital scarcity is the new inflation shield.

Timing beats waiting

The window won’t stay open forever. Regulatory clarity approaches, ETFs mature, and the next halving looms. Miss this, and you’re stuck applauding your bank’s ‘generous’ 0.02% adjustment while actual assets appreciate elsewhere.

—because nothing says 'financial innovation' like banks offering less than a vending machine in returns.

Key Takeaways

• The Fed is expected to lower interest rates in less than two weeks, marking its first cut of the year.
• When the Fed moves, yields on savings, money markets, and CDs generally follow—sometimes even before the official announcement.
• That’s why today’s best CDs are worth grabbing, locking in mid-4% returns for months or years—immune to Fed cuts.
• For cash you want accessible, top high-yield savings accounts still pay in the upper 4% range for now, though rates will almost certainly slip lower.
  

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A Fed Rate Cut Is Likely Coming Soon—Here’s What It Means for Your Bank Account

Financial markets expect the Federal Reserve's hold-tight stance to end soon, with a 96% chance of a quarter-point rate cut on Sept. 17. The central bank has kept rates steady all year, but a change now appears imminent.

For savers, that’s big. 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 cuts ahead, those highs will fade—so now is the time to lock in a top rate before it’s gone.

CDs Let You Lock in Today’s High Yields Before They Start to Fade

With rates expected to fall, now is a prime time to open a certificate of deposit (CD). You can lock in a rate today that may not be around much longer. Today's best CDs offer 4.40% to 4.60% APY, guaranteed for terms ranging from 3 to 12 months, or choose a 2- to 5-year CD in the low-4% range.

Unlike savings or checking accounts, where yields can drop at any time, a CD rate is yours to keep until maturity. If you can set aside money for a few months, a year, or more, CDs protect your returns from the fallout of Fed cuts.

Just be sure to match your CD to your timeline. Withdraw before the maturity date and you’ll face an early withdrawal penalty. Also, keep some cash accessible for emergencies so you don’t need to dip into your CD before it matures.

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Flexible Cash Can Still Earn Up to 5%—But the Clock Is Ticking

For cash you need to keep handy—whether alongside or instead of a CD—it’s still important to earn a strong return. The FDIC’s national average savings rate is just 0.39%, and some of the biggest names—like Chase, Bank of America, and Wells Fargo—pay near zero. In contrast, high-yield options are easy to find at 10 to 13 times the national average.

Right now, dozens of high-yield savings accounts are paying in the mid-4% range, with two options—Varo Bank and AdelFi—offering up to 5.00% APY. While that top rate requires meeting conditions, our daily ranking of the top high-yield savings accounts includes over a dozen accounts above 4.30% with few or no strings attached.

Prefer check-writing access? The best money market accounts are also paying well, with a leading offer of 4.80% from HUSTL Digital Credit Union. And for those willing to meet some requirements, high-interest checking accounts can pay even more—up to 6%.

Daily Rankings of the Best CDs and Savings Accounts

We update these rankings every business day to give you the best deposit rates available:

• Best High-Yield Savings Accounts - Up to 5.00%
• Best Money Market Accounts - Up to 5.00%
• Best 3-Month CD Rates - Up to 4.41%
• Best 6-Month CD Rates - Up to 4.60%
• Best 1-Year CD Rates - Up to 4.50%
• Best 18-Month CD Rates - Up to 4.30%
• Best 2-Year CD Rates - Up to 4.35%
• Best 3-Year CD Rates - Up to 4.28%
• Best 4-Year CD Rates - Up to 4.28%
• Best 5-Year CD Rates - Up to 4.28%

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.