Why I'm Moving Money Out of High-Yield Savings in November 2025
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A year ago, parking cash in a high-yield savings account felt like a no-brainer. You could earn 5.00% or more without taking any risk.
But things change fast when the Federal Reserve starts cutting rates. Today, many of those "high-yield" accounts are paying closer to 4.00% and dropping by the week. That's why I'm moving a chunk of my savings somewhere new this month.
The rate drop is real
After two straight Fed cuts this fall, the top online savings account yields have slipped to a range of about 3.50% to 4.30% APY, down from around 5.00% or higher last year.
That roughly 1-point difference doesn't sound huge until you do the math. On a $50,000 balance, that's roughly $550 less in yearly interest, and it'll likely fall again before year-end.
Banks move quickly after Fed cuts. When the central bank lowers its benchmark rate, deposit yields usually follow within weeks. That means the 5.00% era of high-yield savings is basically over for now.
Where I'm moving the money
I'm not pulling all of my cash out of my HYSA because I still want quick access for emergencies. But I am shifting some to:
- Short-term CDs: Top 6-month CDs are still paying around 4.00% APY, which locks in today's rate before more cuts hit.
- A CD ladder strategy: By taking my cash and buying CDs with staggered maturity dates (six months, one year, 18 months, etc.), I'll have a fairly consistent cash flow to decide what to do next.
CDs are one of the only savings vehicles that guarantees a decent return. I truly don't understand why more people aren't using them. If you're just getting familiar with CDs, you can compare the best ones here.
The simple strategy I'm using
I'm laddering short-term CDs so one matures every few months. If rates fall further, I've already locked in higher yields. If they rise again, I'll have cash ready to reinvest.
It's the same principle as diversifying your investments: spread risk, stay flexible, and don't let a single move from the Fed decide your returns.
What are you waiting for?
High-yield savings accounts were the best deal in town for most of 2024. But as the rate cuts roll in, it's time to think like a saver again.
I'm keeping my emergency fund where it belongs, but the rest of my cash is going to work somewhere it can actually earn.
Check out the top CD rates available now and lock in before rates slide further.
Our Research Expert
Jake FitzGerald is a full-time Editorial Strategist and Personal Finance Writer at Motley Fool Money, leading content production and distribution while also writing about credit cards, bank accounts, and other financial products. He has more than a decade of experience editing and shaping financial content to give readers clear, trustworthy money advice. His work focuses on delivering practical insights that empower people to make smarter financial decisions. Off the clock, he’s a fan of college football tailgates and still loyal to his favorite putter -- despite what his short game suggests.