Rates Are Falling. Here's Where You Can Still Get a High APY

For the first time in 2025, traders are forecasting a cut in interest rates at the next FOMC meeting. That means that rates on most banking products, which have already been on the decline recently, will likely keep falling.

But there are still ways to earn 4.00% APY -- or higher -- if you act soon.

Here's where to look.

1. Lock in a high rate with a certificate of deposit (CD)

One of the best ways to get a guaranteed return is with a certificate of deposit (CD), where you deposit your money for a fixed period -- usually from three months to five years -- in exchange for a fixed APY.

CD rates tend to drop in tandem with the federal funds rate -- which makes now a smart time to consider one.

A CD might be right for you if:

• You have savings you won't need right away
• You want a fixed, guaranteed return
• You're saving for a short- to mid-term goal
• You already have an emergency fund set aside in a savings account

2. Stay flexible with a high-yield savings account (HYSA)

If you want to keep your money accessible but still earn solid interest, a high-yield savings account (HYSA) is one of your best options. Some of the top HYSAs are still paying over 4.00% APY, and unlike CDs or annuities, you don't have to lock up your funds.

Although your APY could drop at any time, you might find that the access to your money is a worthwhile tradeoff.

The best HYSAs also come with no monthly fees or minimum balance requirements, plus FDIC insurance up to $250,000. All of that makes them an ideal place for your emergency fund or money you might need soon.

3. Get long-term growth with a fixed annuity

Finally, a fixed deferred annuity is another great way to lock in a high rate -- potentially even higher than most CDs.

These are insurance products that work a bit like long-term CDs: You deposit a lump sum, earn interest at a fixed rate, and receive regular payments in the future.

Many of today's best fixed annuities offer returns between 5% and 6% annually, with zero market risk. But unlike savings accounts or shorter-term CDs, your money is typically locked in for several years.

Before you buy, you'll also want to make sure the annuity includes a death benefit, so your heirs can receive the funds if something happens to you before all your money has been paid out.

Any of the above options are a great way to combat falling interest rates -- and make your money work harder for you while it still can.