Don't Wait for the Fed to Blink -- Lock In These High Yields Now

If you've been meaning to move your cash into a high-yield account or CD, this is your wake-up call. I've been writing about banks for years now and know how many people are just leaving money on the table.

We're still in a golden window for savers, but it's shrinking fast. Top high-yield savings accounts are paying up to about 5.00% APY, and 1-year CDs are hitting 4.25% or higher at some banks. These are the kinds of rates we haven't seen in two decades. And once the Fed makes its next move, they'll start to disappear.

Why this matters right now

The Federal Reserve has held interest rates steady for most of 2024 and into 2025. But the signals are clear -- rate cuts are likely coming later this year.

Once the Fed starts cutting, banks won't waste time lowering what they pay on savings accounts. That means this moment where savers hold the upper hand won't last.

You don't want to look back six months from now and wish you had moved sooner.

CDs vs. savings accounts: Which should you pick?

If you don't need instant access to your cash, locking in a CD now could protect your yield longer. CDs offer guaranteed returns for anywhere from three months to as long as five or even 10 years, shielding you from the potential of falling rates.

On the flip side, high-yield savings accounts give you flexibility, and the best ones still offer impressive APYs for now. If the Fed delays its cuts, you can still benefit longer term.

Most people wait too long -- don't be one of them

It's easy to miss windows like this because the shift doesn't happen all at once. Rates dip a little, then a little more, and by the time you notice, you've lost your edge.

Banks don't send out alerts when they slash their savings rates. They just quietly do it.

If you've got extra cash sitting in a checking account earning next to nothing, that's dead weight. Even a few thousand dollars moved into a high-yield account now could mean real money by year-end without taking on any risk.

The hardest part is just doing it. But once it's done, your money's finally pulling its weight.