Act Fast: Savings Rates May Be Peaking. Here's How to Lock in a 4% APY Now

If you've been meaning to open a high-yield CD, now's your moment.

With wide expectations of a Federal Reserve rate cut at the upcoming September 17 meeting, we may be nearing the end of this high-rate window. If that happens, APYs on CDs, savings accounts, and other deposit products are likely to follow suit -- and fall.

As someone who tracks interest rates for a living, this is the part of the cycle where things tend to change quickly. The window to lock in a 4.00% APY or better may not stay open for long.

Short-term CDs are having a moment

Most of us want solid returns and the flexibility to access our cash. That's where short-term CDs really shine, and the rates are great right now.

Some online banks are offering 6- to 18-month CDs with APYs in the 4.00% to 4.25% range. That's higher than most long-term options, and lets you stay nimble going into 2026 and beyond.

Here's what a $10,000 deposit could earn with a shorter-term CD:

If you've got money earmarked for a 2026 goal, or even early 2027, this is a solid way to earn a little extra without risking any capital.

Why the best APYs might not last

At the start of the year, most experts expected two or three Fed rate cuts in 2025. But the Fed's been in no rush, holding rates steady and playing the long game.

Expectations for a cut have been building each month. And with nothing too alarming in the July inflation report, many traders now believe a rate cut is coming in September. Of course, opinions can change fast. Only time will tell what actually happens.

Regardless of the federal funds rate, banks set their own rates. They can (and often do) cut CD and savings rates in advance. We've already seen some APYs drift lower this year.

So if you're eyeing a 4.00%+ CD, it might not be around much longer -- even without a Fed move.

High-yield savings APYs are still attractive

Not everyone wants to tie up their cash in a CD. And honestly, I'm part of this group.

That's why I still keep most of my cash pile in a high-yield savings account (HYSA). Some of the top online HYSAs are paying around 3.80% to 4.20% APY right now, and you can move your money in or out anytime.

Yes, these rates can (and likely will) drop after a Fed cut. But it'll probably be gradual. Even if rates fall into the low 3.00% range, that's still better than a checking account earning 0.01%.

If you want to keep your cash accessible but still earn decent interest, an HYSA is a great call.

Don't let your cash sit idle

If you've been holding off on opening a CD or switching banks, I understand your hesitance -- especially when the economy feels unpredictable.

But the truth is, top savings rates don't stick around forever. Whether the Fed cuts rates next month or not, we're already seeing signs that APYs may be drifting lower.

So if you've got extra cash sitting on the sidelines, this is your chance to take action.

Explore the best CD rates today and lock in a 4.00%+ APY while you still can.