2 Important 2025 Banking Changes Everyone Should Know About

The last couple of years have been odd for banks. Rising interest rates brought savings account rates like these to extreme highs, and borrowing money became so expensive that some people have had to rethink their plans for home buying and other big decisions.

But slowly, the tide is starting to turn. While we can't predict exactly where bank interest rates will wind up next year, we can be pretty certain that the following two changes are coming.

1. Bank accounts will earn less interest

Savings account and certificate of deposit (CD) interest rates have already dropped from their 5.00% APY highs, and they're expected to fall even further. Experts predict two more Federal Reserve rate cuts before the end of the year, followed by four additional cuts in 2025. 

Fed rate cuts don't directly affect bank account interest rates, but banks usually follow whatever the Fed is doing. It's almost certain that banks will swiftly lower their rates following the upcoming rate cuts, though your bank may not slash rates by the same amount.

Our Picks for the Best High-Yield Savings Accounts of 2025

Product	APY	Min. to Earn
American Express® High Yield Savings Account Member FDIC. APY 3.70% Rate info 3.70% annual percentage yield as of April 22, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings Account On American Express's Secure Website. Member FDIC.	3.70% Rate info 3.70% annual percentage yield as of April 22, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings Account On American Express's Secure Website.
CIT Platinum Savings Member FDIC. APY 4.10% APY for balances of $5,000 or more Rate info 4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY Min. to earn $100 to open account, $5,000+ for max APY Open Account for CIT Platinum Savings On CIT's Secure Website. Member FDIC.	4.10% APY for balances of $5,000 or more Rate info 4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY	$100 to open account, $5,000+ for max APY	Open Account for CIT Platinum Savings On CIT's Secure Website.
Barclays Tiered Savings Member FDIC. APY 4.10% Rate info Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%. Min. to earn $0 Open Account for Barclays Tiered Savings On Barclays' Secure Website. Member FDIC.	4.10% Rate info Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%.	$0	Open Account for Barclays Tiered Savings On Barclays' Secure Website.

Savings accounts will feel this the worst because their interest rates are variable. However, if you open a Discover® Online Savings account, you can rest assured that even if rates fall, you'll continue to earn a rate that's well above the national average no matter what happens. This is true of all high-yield savings account rates.

CD owners won't notice changes right away because CD rates are usually locked in for the full CD term. However, those hoping to open new CDs would do well to act quickly before the next rate cut, expected on Nov. 7. If you wait longer than this, you'll probably have to settle for a lower rate than what's available today.

2. Borrowing money will become more affordable

Though the loss of bank account interest is disappointing, it could be mostly or entirely offset by a cheaper cost of borrowing for those who currently have or plan to take out a loan in the near future. Expect to see mortgage rates, personal loans, and other types of loans become more affordable throughout 2025.

If you hope to refinance your existing mortgage, consider waiting until at least halfway through 2025. Refinancing comes with closing costs, so you only want to do it once during this rate-cutting cycle. By waiting until a few more rate cuts have happened, you'll be able to secure a lower rate.

If you're planning a new home purchase, consider holding off until 2025 if you can. If not, you may want to consider a refinance down the road as well. 

Just because it's not time to make your move yet doesn't mean you can't compare some of the top refinancing lenders. Many let you to get prequalified online without hurting your credit score, so you can get a sense of which offers you the best rates. Then, keep checking back every month or two to see where rates are. When they get to a level you're comfortable with, go ahead and apply. 

Just bear in mind that when rates drop, a lot of people try to refinance and that can lead to a backlog of home appraisals. It may take a little longer than expected to complete this process. If you have any questions about what you should do, reach out to your bank or a refinancing lender you're considering to discuss your options.