Will Savings Account Rates Fall After the Fed's June 17-18 Meeting?

I've been really enjoying my 4.00%+ APY on my high-yield savings account the past couple of years. But I know it won't last forever.

Right now, futures traders predict a 99.8% chance that the Federal Reserve won't change interest rates at its June 17-18 meeting, according to CME FedWatch. And while that might sound like good news for people earning strong returns on cash, here's the twist: Even without a rate cut this month, savings account yields could still fall soon.

Here's what that means for your money -- and more importantly, how you can protect your earnings.

The Fed is likely standing pat (for now)

While no rate changes are expected in June, the Fed's post-meeting comments could signal a shift.

If Fed policymakers signal that inflation is cooling toward their 2% target, markets may take that as a sign that rate cuts are on the horizon.

Unless something unexpected flares up, many experts think the Fed could start easing later this year anyway -- starting as early as September.

Why savings account rates may drop anyway

Even without a Fed rate cut, banks don't need permission to lower your savings account rate. They can (and do) adjust rates based on market trends, internal goals, or just plain strategy.

So even if the Fed stands still in June, some banks may start front-running future rate cuts. (In fact, we've already seen a few quietly shave down their APYs in recent weeks.)

That said, today's top savings rates are still historically high. And some banks are offering generous perks to win new customers -- so there's still time to lock in great value.

How to lock in today's high rates

If you're looking for a guaranteed return, short-term CDs are worth a serious look. You can still find CDs paying over 4.00% APY for 6-month or 1-year terms -- which is a solid return if you don't need that cash immediately.

These CDs let you lock in today's high rates before they start to slip. And they're especially useful if you want to avoid the guesswork of a savings account that could drop its APY at any time.

No matter the term length, just make sure you're comfortable leaving the money untouched until the CD matures.

Final thoughts

Rates may not drop right away. But even if the Fed stays put this month, some banks won't wait for the rate cuts that are expected later this year.

If you've been thinking about moving your savings -- or locking in a rate with a CD -- this is a great time to explore your options. A few small steps today can help your money go further tomorrow.