Fed Rate Cut Coming? Here's Where Banks Are Still Paying Above 4% APY

The odds are in: As of this writing, rate traders are pricing in an 87.3% chance the Federal Reserve will cut interest rates at its September meeting.

If that happens -- or maybe even before then -- the awesome APY's we've been enjoying on high-yield savings (HYSA) and certificate of deposit (CD) will likely drop. That's just how the cycle works.

So if you've been eyeing a 4.00%+ APY, now's the time to grab it before it's gone.

Why savings rates could drop soon

For the most part, banks adjust their savings and CD rates based on what the Fed does. When the Fed raises rates, yields go up. But when cuts are on the table, banks usually start pulling back before the official pivot happens.

We're already seeing it. A few major online banks have dropped their CD rates this month. And if history repeats, more will follow.

Here's what this means for your money:

• If you're holding off on opening a high-yield CD, waiting could mean locking in a lower return.
• If you're relying on a savings account for short-term goals, your interest earnings may decline in the coming months.

That's why it's smart to act now while 4.00%+ rates are still widely available.

Where to lock in 4.00% APY or better right now

Here are some of the top CD rates available right now.

If you deposit $20,000 into a 12-month CD paying 4.00% APY, you'll earn a guaranteed $800 in interest. And no matter what happens to rates later this year or into 2026, your money keeps working at full speed.

Check out all our top pick CDs here from trusted banks, and lock in a 4.00+ APY while you still can.

High-yield savings options with 4.00%+ APY

If you prefer to keep your money fully liquid, some high-yield savings accounts (HYSAs) are still paying very attractive rates right now.

Here are a few top HYSAs right now with APYs of 4.00% or higher:

Unlike CDs, you can withdraw your money at any time without penalties. Most accounts process ACH transfers in and out within one to three business days. It's not quite instant access, but it's close enough for most savings goals.

Yes, rates on HYSAs will change over time -- especially if the Fed cuts. But the upside is you'll continue to earn one of the highest available rates as long as you stay with a competitive bank.

Act now while rates are high

The Fed hasn't pulled the trigger yet, but the writing's on the wall. Rate cuts are most likely coming -- and when they do, today's high APYs won't be as sweet.

If you've been waiting to make a move, this is your window. Lock in a top rate now, and you'll keep earning more long after the Fed changes course.