The Best Yields for Your Cash Before the Fed’s Likely Cut

Core Insights - The article discusses the current landscape of cash yields in light of an expected Federal Reserve rate cut, highlighting that safe cash options still offer strong returns despite a potential decrease in yields [2][10]. Group 1: Current Cash Yield Landscape - High-yield savings accounts can offer rates up to 5.00% under certain conditions, while no-strings-attached accounts yield around 4.50% [4][10]. - Certificates of Deposit (CDs) are currently offering the best nationwide rate of 4.50%, while brokerage accounts and U.S. Treasuries provide attractive returns in the mid-3% to mid-4% range [4][10]. - The article emphasizes that even with a Federal Reserve rate cut, cash yields remain historically high, making it an opportune time for savers to invest idle cash [3][10]. Group 2: Earnings Potential - A lump-sum deposit of $5,000, $10,000, or $25,000 can generate significant interest over six months, with potential earnings ranging from $87 to $617 depending on the annual percentage yield (APY) [8][9]. - The article provides a detailed breakdown of earnings based on various APYs, illustrating how different balances can yield different returns [9]. Group 3: Types of Cash Products - The article categorizes cash options into three main types: bank and credit union products (savings accounts, money market accounts, CDs), brokerage and robo-advisor products (money market funds, cash management accounts), and U.S. Treasury products (T-bills, notes, bonds) [12][16]. - Each category has its own yield characteristics and trade-offs, allowing savers to choose based on their goals and timelines [12][13].