Four CDs to check before a Fed rate cut

The Federal Reserve is expected to cut interest rates by 0.25% at its next meeting in September, and that will have an impact on your savings account. Both high-yield savings accounts and CDs currently offer rates well above 4% and in some cases 5%, but rates won’t stay that high for very long. While the cut in the federal funds rate won’t directly affect CDs, banks will typically follow suit and change rates accordingly.

A rate cut won’t immediately cause interest rates to fall sharply, but more cuts are expected throughout the rest of the year and into 2025 as the Fed gradually lowers rates from their 23-year high. So if you want to take advantage of the rates while they’re still this high, you’ll want to act soon.