The Fed Meets June 17 -- Here's What That Means for Your Money

I don't know whether to cheer or boo for rate cuts.

On the one hand, a cut could bring lower borrowing costs and maybe even some relief on mortgage rates.

But on the other hand, goodbye to those beautiful 4.00%+ rates we've been enjoying on savings products. If interest rates fall, so do the yields on high-yield savings accounts, certificates of deposit (CDs), and money market funds.

At the start of 2025, most experts predicted two or three rate cuts this year. Now we're almost halfway through, and we've seen zero.

So the big question heading into the June 17-18 Fed meeting is: Will this finally be the moment, or are we still stuck in a holding pattern?

Either way, your money could feel it. Here's what to know -- and how to protect your cash before the Fed makes its move.

If the Fed cuts rates, your savings could take an instant hit

A rate cut (even a small one) could send savings yields down fast.

Banks often respond to Fed moves almost overnight, especially when trimming the APYs (annual percentage yields) on their most competitive accounts.

High yield savings accounts (HYSAs) feel an immediate impact, because they have variable rates that can change any time. Same with money market accounts.

But if your money is in a certificate of deposit (CD), you've got a guaranteed rate for the duration of your CD's term and are protected from cuts.

Now's a great time to give your cash a quick check-up and make sure it's working as hard as it should be.

Why locking in a CD now could be your smartest move

If you've been stockpiling extra cash, this might be the moment to lock in a top CD rate.

I'm talking about money you won't need for a while, like savings for a house down payment, a big trip next year, or any short- to mid-term money goals.

Putting that money in a CD lets you lock in today's higher APY for the full term.

Right now, some of the best CD rates are hovering around 3.50% to 4.35% APY. Here's what a $10,000 deposit could earn you at various term lengths:

• 6 months at 4.35% APY = $215
• 1 year at 4.00% APY = $400
• 2 years at 3.80% APY = $774
• 3 years at 3.50% APY = $1,087
• 4 years at 3.50% APY = $1,475
• 5 years at 3.50% APY = $1,877

As long as you don't withdraw your money early, this is all guaranteed interest. No matter what happens to rates, your earnings are protected.

In fact, looking way beyond the June 17-18 Fed meeting, you won't have to worry about any changes for the entire term. Just make sure the CD term lines up with when you'll need the cash.

High-yield savings accounts still make sense

Even with the rate drama, HYSAs are one of the best spots for short-term cash.

I keep my personal $25,000 emergency fund in one of these accounts. Yes, my rate is subject to changes. But that's the price I'm willing to pay for the flexibility to access my funds at any time.

As of right now, online banks on our list are still offering up to 4.40% APY on HYSAs. That's over 10X the national savings rates -- and 60X the average checking account rate!

HYSAs are a no-brainer for any cash you don't want to lock up long term.

The bottom line

You don't have to guess what the Fed will do to make a smart move right now. Whether rates dip or hold, the key is to stay proactive, protect your earnings, and not let indecision win.