After years of higher yields on cash, the Federal Reserve's shifting policy means lower future returns on savings, certificates of deposit and money market funds.
Despite falling rates, investors should still keep emergency funds "liquid," meaning the cash can be easily tapped, financial experts say.
Banks use the federal funds rate to lend to and borrow from one another.
Meanwhile, the biggest retail money market funds were still paying around 5%, as of Sept. 24, according to Crane Data.
If you have been earning 4% to 5% on emergency savings, you could see a "small reduction" in the short term, said Kenealy, who recommends keeping emergency funds where they are.
Persons:
Kathleen Kenealy, Banks, Kenealy
Organizations:
Finance, Data
Locations:
Woburn , Massachusetts