A Fed Rate Cut Looks Likely Next Week—3 Smart Moves To Protect Your Savings

Core Insights - The Federal Reserve is anticipated to implement its third rate cut of the year next week, with markets pricing in over 85% probability of a quarter-point reduction [1][2] Impact on Savings - Interest rates on savings accounts and CDs are closely tied to the Fed's benchmark rate, leading to expected declines in deposit yields in the coming weeks [2][9] - Despite the anticipated cuts, current savings and CD yields remain historically attractive, with some accounts offering returns above 6% earlier this year, and many still providing mid-4% returns [3][4] Recommendations for Savers - To mitigate the impact of falling yields, savers are encouraged to regularly check their savings account APY and explore higher-yield options in the market [7][15] - Locking in a top CD before the Fed's cut can secure today's high rates into 2026, providing a safeguard against future rate declines [8][12] Strategies for Maximizing Earnings - Two key habits are recommended: regularly monitoring APY and shopping around for better rates if a bank significantly lowers its yield [15][10] - CDs are highlighted as effective tools for securing high yields for longer periods, as the locked-in rate remains unchanged regardless of Fed rate cuts [12][13]