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

I've loved high-yield savings accounts over the past two years. They've been paying over 4.00% APY, which is the kind of return we haven't seen in more than a decade. But those rates aren't going to last.

The Federal Reserve is expected to begin cutting interest rates later this month, and savings account APYs will tumble right alongside. That's why I'm moving a chunk of my money out of high-yield savings in September and locking it into places where I can preserve today's higher returns.

Savings accounts are about to pay less

High-yield savings accounts are variable. When banks cut rates, they cut them fast. That 4.25% APY you see today could be under 3.75% by November. And once it drops, you have to wait for rate cycles to change to get it back.

I'm not closing my savings account completely. It's still the best spot for my emergency fund and short-term goals. But I don't want thousands of dollars sitting in cash earning less and less interest each month.

Where I'm moving the money

I'm moving my cash into certificates of deposit (CDs). CDs let me lock in today's yields for a set term like 12, 24, 36 months, or longer. Once I'm in, the bank can't cut the APY, no matter what the Fed does.

I'm also using a CD ladder. That means splitting my money across different term lengths so a portion comes due every year. It gives me steady access to cash if I need it, while still locking in higher rates on longer terms.

This way, I don't have to guess exactly when I'll need the money, and I don't miss the chance to preserve today's top APYs.

The math behind the move

Let's say you have $20,000 sitting in savings:

• At 4.25% APY, that earns about $850 in interest over the next year.
• If rates fall to 3.50% by year's end, that drops to $700 in interest.

That's $150 less just because you waited. Now scale that up if you've got a bigger emergency fund or down payment fund. The lost interest adds up fast.

Why now is the time to act

Waiting until after the Fed cuts rates is too late. By then, banks will already have slashed their APYs. Moving money before the Fed meeting on Sept.17 gives you the chance to lock in one of the last rounds of 4%+ rates before they likely disappear.

I'm not abandoning high-yield savings altogether; they'll always have a place for my emergency cash. But for the money I don't need immediately, I'd rather secure today's top rates than watch them slide lower. Compare the best CD rates today.