3 Reasons I'm Keeping My HYSA, Even After Rates Drop

Can you hear it? The death knell of 4% and 5% rates on savings accounts, money market accounts, and CDs? It's approaching fast. These rates have only been possible thanks to a higher federal funds rate than we've seen in years.

But at its meeting in September, the Federal Reserve is predicted to start cutting that rate since inflation has finally slowed. Once it does, you can expect the rates on bank accounts to fall -- along with rates on credit cards and loans, which will greatly benefit Americans who are in debt or seeking to borrow money.

My high-yield savings account (HYSA) currently pays more than 4% APY -- but that rate will likely be on the chopping block soon, too. Here's why I'll be keeping the account even after it doesn't pay such a great rate on my saved cash.

1. I love my bank's other features

OK, I rank this bank account's APY among my favorite features -- who wouldn't love earning free money just for keeping the account funded? But it's not the only reason I love the account.

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of December 29, 2024. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of December 29, 2024. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

The online bank the account is with has a fantastic mobile app -- not only can I check on my account balance from anywhere, but I can move money around at will, both within the bank and to others, using Zelle. My bank has a network of more than 40,000 free ATMs I can use, including one right in my neighborhood. If I ever needed to take cash out elsewhere, I'll be reimbursed for up to $10 a month in ATM fees.

And my HYSA has my favorite online bank feature: savings buckets! These let me save for different goals in the same account without having all the money mixed together. This is super handy, since I keep my quarterly tax payments, vacation savings, emergency fund, and several other pools of money all within the same account.

2. I have multiple accounts with the same bank

Another reason I'm going to hang onto my HYSA even after its rate goes down is that I am firmly embedded in the ecosystem for its bank. I opened a checking account not long after opening the HYSA so I'd have an easy way to get cash out with a debit card and also be able to make purchases. And I just opened an individual retirement account (IRA) with the same bank so I can finally start investing for retirement.

3. The APY will still beat my big-bank savings account

Finally, even after the Federal Reserve cuts the federal funds rate, the factors that allow my HYSA to pay higher rates than a big bank will still be in place. My HYSA is with an online bank, which means I'm not being charged account maintenance fees or being given a lower APY to pay for bank branches.

Plus, online banks offer fewer services than brick-and-mortar banks do, just by nature of the fact that they exist on the internet -- you can't open a safety deposit box at one, for example. Thanks to this, I still expect my HYSA to keep beating my big-bank savings account (which pays just 0.01%) as well as the national average for savings account rates, whatever it ends up falling to after rates are cut (as of this writing, it's 0.46%).

Ultimately, my high-yield savings account has been a fantastic addition to my personal finances. Even once the account no longer pays above 4% APY, it'll be worth hanging onto for all these benefits.