Top 4 Savvy Savings Strategies to Secure High Rates Before Fed Rate Cuts

Essential Insights

The Federal Reserve is expected to reduce the federal funds rate soon, which will likely lower savings and CD interest rates. Luckily, there are four smart options to secure today’s attractive rates well into the future—three of which require no long-term commitment.

• Poppy Bank: Premier Online Savings Account offers a guaranteed 5.50% APY for 3 months.
• Climate First Bank: Penalty-Free 6-Month CD pays 5.24% APY with flexible withdrawal.
• Primis Bank: Novus Checking Account provides 6.00% APY for 6 months with easy direct deposit requirements.
• Long-Term CDs: Nationwide top CDs offer fixed rates for 1 to 5 years, locking in strong returns despite upcoming Fed cuts, though funds are inaccessible during the term.

Since rates have started to decline and will drop further after the Fed’s announcement, acting quickly is crucial to maximize your savings growth.

Fed Rate Cuts Are Imminent—Secure Your Savings Rate Now

Throughout 2023, high-yield savings accounts and CDs soared due to the Fed’s aggressive rate hikes aimed at controlling inflation, which peaked at 9.1%. The Fed raised rates 11 times between March 2022 and July 2023, reaching levels unseen since 2001. However, with inflation cooling to 2.5% as of August 2023, the Fed plans to start cutting rates, which will push deposit rates downward.

To stay ahead, consider these rare opportunities that let you lock in current high rates before they decline.

Lock in the Nation’s Best Savings Rate with a 3-Month Guarantee

Poppy Bank currently offers the highest nationwide savings rate at 5.50% APY, guaranteed for 90 days. This account requires only a $1,000 minimum balance and has no monthly fees. Unlike typical variable savings rates that can change anytime, this rate lock ensures your earnings won’t drop during the guarantee period.

Penalty-Free 6-Month CD with Near-Top Returns

Climate First Bank’s no-penalty 6-month CD pays a competitive 5.24% APY, just shy of the national leader. Unlike traditional CDs, this product allows penalty-free withdrawals after six days, offering flexibility without sacrificing much interest. A $500 minimum deposit applies, with no maximum limit, making it an excellent option for savers seeking both high returns and liquidity.

Security of Your Deposits

All featured accounts are federally insured by the FDIC or NCUA, protecting deposits up to $250,000 per individual, ensuring your funds are safe regardless of institution size.

Earn 6.00% APY with a Unique Checking Account

Primis Bank’s Novus Checking Account is a standout, offering 6.00% APY on balances up to $100,000 when you set up a direct deposit of $1,200 or more monthly. Unlike typical high-yield checking accounts, no debit card usage is required. Plus, the 6% rate is locked in for six months as long as you meet the deposit criteria, combining high returns with full account access.

Long-Term CDs: Secure Rates Beyond the Short Term

With the Fed expected to cut rates multiple times through early 2025, locking in rates now with 1-year or longer CDs can protect your earnings well into the future. Top 1-year CDs offer up to 5.25% APY, while 2-to-5-year CDs provide mid- to upper-4% APYs, guaranteeing your rate until 2026 or beyond.

Daily Updated Rankings of Best CDs and Savings Accounts

Our comprehensive daily rankings include the best rates for 3-month, 6-month, 1-year, 18-month, 2-year, 3-year, 4-year, and 5-year CDs, plus top high-yield savings accounts, helping you find the highest returns available nationwide.

Our Methodology for Finding the Best Rates

We analyze rate data from over 200 federally insured banks and credit unions nationwide. To qualify, institutions must be FDIC or NCUA insured, offer accounts with reasonable minimum deposits (not exceeding $25,000), and be broadly accessible in at least 40 states. We exclude credit unions with high donation requirements to ensure easy membership access. This rigorous approach ensures we present only the best, most accessible savings options.

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