Why I'm Moving Money Out of High-Yield Savings in October 2025

I've been a big fan of high-yield savings accounts these past couple of years. Earning over 4.00% APY on completely safe, FDIC-insured cash has been a gift. But after the Federal Reserve's September rate cut, and with another one likely coming at the end of this month, I'm starting to move a chunk of my money elsewhere.

Not because I don't love high-yield savings accounts. I do. But because I hate watching my returns fall month after month when I could easily lock in today's higher rates instead.

Savings account rates are heading south

When the Fed cuts rates, banks follow fast. That 4.00% APY you see on your savings account right now? It'll probably be closer to 3.75% by November, and possibly under 3.50% by early next year if the Fed continues cutting rates.

And unlike a CD, there's no way to "lock in" that rate. Your yield floats with the market. So while you might feel safe sitting in cash, your earning power is shrinking quietly in the background.

I'm not draining my savings completely. I still keep three to six months of expenses in a high-yield account for emergencies. But for the extra cash I won't need soon I'm taking action before the next cut hits.

Where I'm moving the money

I'm shifting part of my savings into certificates of deposit (CDs). CDs let you lock in a guaranteed rate for a set period, typically anywhere from six months to five years.

To keep some flexibility, I'm using a CD ladder. That means splitting my money across multiple CDs with different maturity dates. A few months from now, one CD will mature, giving me access to some cash, while others keep earning higher locked-in yields. It's a great balance between liquidity and security. Lock in a guaranteed 4.00%+ APY before the next Fed cut.

The math says it all

Let's say you've got $20,000 parked in a savings account.

• At 4.25% APY, that earns about $850 over the next year.
• If rates slide to 3.50%, you're suddenly earning just $700.

That's $150 gone just for waiting. And the larger your cash balance, the more those small percentage drops sting.

Acting before the next cut

The Fed's next meeting is scheduled for Oct. 28–29, and markets are already pricing in another 0.25% rate cut. Once that happens, banks won't wait to slash their APYs.

That's why I'm locking in my rates now. High-yield savings accounts have been incredible for the past two years, but this window of 4.00%+ returns is closing fast.

I'll always keep my emergency fund in a liquid savings account. But for money I don't need right away, I'd rather secure guaranteed returns than watch them disappear week by week.

Compare today's top CD rates and lock in before they drop again.