Worried About Plummeting Interest Rates? Here's How to Keep Earning Big With Your Savings

It was fun while it lasted. For over a year, banks were offering their best rates in decades on high-yield savings accounts and CDs. But on Sept. 18, the Federal Reserve slashed the federal funds rate by half-a-percentage-point. Rates on banking products have since come down accordingly.

Another rate cut is expected in November. If you have a large amount of money saved, it's disappointing to suddenly be earning much less.

Fortunately, there's still a way to get a sizable return on your savings. You could even end up earning more than before.

Maximize your savings with a bank bonus

Banks compete for your business. As an incentive to open an account, many banks offer cash bonuses for new clients. These are available with checking accounts and savings accounts. Each bonus has conditions you need to meet to earn it. These vary, but they're usually one or more of the following:

• Meet a minimum deposit requirement
• Receive a minimum amount of direct deposits
• Meet a minimum number of qualifying activities, such as deposits or debit card purchases

A bank bonus is an easy way to make up for lower savings rates. You could earn an extra $100 or more by meeting the requirements for one of these bonuses. And if you open a high-yield savings account with a bonus, you could also keep earning a competitive rate on your money.

For a bonus opportunity and a high interest rate, consider the Discover® Online Savings account. It has a 3.60% APY and is currently offering a limited-time bonus for first-time customers who use offer code TMF325. Click here to learn more and open an account today.

What to know about bank account bonuses

A bank bonus is a nice incentive to open a new account. But before you commit, make sure it's also a quality bank account you'll want to continue using. Moving your money around from account to account is inconvenient. It could even lead to your bonus being clawed back, if you don't maintain a minimum balance long enough or if you close the account too quickly.

Read the terms for a bank bonus so you're aware of all the rules. And if it's a savings account you're after, look for these features, as well:

• A high APY
• FDIC insurance coverage
• No monthly maintenance fees

Features like these are why I recommended the Discover® Online Savings account. It doesn't have the biggest bonus on the market. But it still has a generous bonus, along with a high APY, FDIC insurance, and no monthly fees. It's rare to get all those perks and a bonus in a single account. To find out more, check out our full review to see all its benefits.

Interest rates have dropped, and all indications are that they'll go down further in the near future. If you're disappointed and want to earn extra money with your savings, check out bank bonuses, because there are lots of opportunities for bonus cash available.