Prediction: Savings Account APYs Will Fall Further in November or December

The Federal Reserve cut the federal funds rate by 0.50% on Sept. 18, and you've probably already noticed the difference in your savings account. Many banks offering high-yield accounts also dropped their rates within a few days of the Fed's announcement. The only people who probably haven't noticed a change are those still settling for a measly 0.01% APY with a brick-and-mortar bank.

I don't like being the bearer of bad news, but more rate cuts are coming -- and soon. But if you know when it's likely to happen, you can plan accordingly to ensure your money is in the best possible place before additional dips.

The Fed only meets twice more this year

The Federal Reserve has two more meetings slated for 2024 -- Nov. 6–7 and Dec. 17–18. It always announces rate cuts on the last day of the meeting, so the dates open for additional 2024 cuts are Nov. 7 and Dec. 18. Or it could be both.

Fed Chair Jerome Powell recently stated that he expected two more 0.25% interest rate cuts this year. This doesn't mean your savings account rates will drop by the same amount. The federal funds rate is only a guideline that banks use in setting rates for consumers. But there's a good chance you'll see a similar drop.

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 January 4, 2025. 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 January 4, 2025. 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 4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, 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.	4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, 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.

Some have taken this as a sign that it's time to lock in a high certificate of deposit (CD) rate before the November meeting. CDs guarantee your interest rate for the full CD term. By opening one now, you could secure an APY of 4.00% or higher for years if you wanted to.

That'll help you maximize your interest payments, but you must give up access to your cash for the full term to do this. Early withdrawals bring penalties, usually equalling several months of lost interest.

If you want to do this yourself, check out Marcus by Goldman Sachs CDs. They only require a minimum deposit of $500 to open, which is lower than many of its competitors. These CDs also offer rates as high as 4.10% APY right now. That could earn you $470 in a year on a $10,000 initial deposit. But remember, these rates will probably disappear in about a month, so act quickly if you want to lock them in.

You don't have to ditch your savings account

It's fine to hold onto your savings account even if your APY takes a hit over the coming months. Realistically, the lost interest probably won't amount to much. If you go from earning 4.00% APY to 3.00% APY, that'll only cost you about $1 per month on a $1,000 balance. Plus, savings accounts keep your money accessible, and that's valuable in its own way. Some even offer ATM cards so you can quickly access cash as needed.

The only people who might want to think about switching their savings account are those still earning less than the national average of 0.42% APY. Online banks often offer above-average rates, no matter what kind of rate environment we're in, and most don't charge account maintenance fees, either.

There are plenty of great offers out there, but I'd recommend the Discover® Online Savings account. I opened one myself and right now, it's paying me a whopping 3.75% APY. If you're interested in taking advantage of these above-average rates while working with a trusted brand, you can apply online in just a few minutes.