The Federal Reserve is expected to drop interest rates at its next meeting on September 17 and 18.
When the Fed rates drop, interest rates for high-yield savings accounts and CDs will drop too.
The Fed is the central banking system of the U.S., so if it drops its rates, the best CD rates and high-yield savings account rates drop too.
No-penalty CDs let you lock in higher rates while still giving flexibilitySince the Fed is expected to cut rates soon, CDs offering 5% interest can help you earn high interest rates for longer than you could otherwise.
Once interest rates are more stable, a high-yield savings account will likely offer rates that are on par with no-penalty CD rates without the need to track term lengths.
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