These Accounts Still Pay 4% APY or More, but Maybe Not for Long
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Right now, some savings accounts are still paying 4.00% APY or more, but I wouldn't count on it lasting. With the Fed hinting at rate cuts in September, those payouts are likely to start dropping fast.
I've seen this cycle before: banks don't send you a polite email before slashing your rate; they just do it. That's why I always tell people, if you've been meaning to move your money into a better account, now's the time.
Why 4%+ is a rare gift
For most of the past decade, savings accounts at big banks paid basement rates of 0.01% APY. That's $1 in interest on $10,000 over an entire year. Compare that to today's top high-yield savings accounts paying 4.00% APY or more. On that same $10,000, you're looking at around $400 a year instead.
That's not a small difference. Over five years, it's the equivalent of paying for a vacation just by parking your money in the right account.
The looming rate cut
The Federal Reserve has hinted it could start lowering rates as early as September. If that happens, banks won't wait long before trimming yields on savings accounts and CD products. The best accounts are still holding firm at around 4.00% APY, but history says those numbers don't last once the Fed makes its move.
It's almost like you're trying to catch a sale.
Where to look right now
If your money is still sitting in a big bank account paying near-zero, switching is a no-brainer. Plenty of online banks are still paying 4.00% or higher, and opening an account usually takes just a few minutes.
If you're not sure where to start, we've compiled some of the best offers currently available for you on our best high-yield savings account page.
Don't wait until it's too late
Most people don't switch accounts until after rates have already dropped. By then, the best deals are gone. If you've been putting this off, consider this your reminder: Today's rates could be the peak for a while.
Moving your savings now means you'll get to take advantage of the tail end of one of the best stretches for savers in more than a decade. That's a financial tailwind worth catching.
Our Research Expert
Jake is a full-time Editorial Strategist for Motley Fool Money. He specializes in product ratings and all things credit cards, and wants to make sure each person has the best card for them.