Why I Won't Move My Money Out of My High-Yield Savings Account, No Matter How Far Rates Drop

Savers haven't had a lot to celebrate lately. High-yield savings account and certificate of deposit (CD) rates have dropped sharply in the wake of the Federal Reserve's half-a-percentage-point rate cut on Sept. 18. And experts predict two more rate cuts in the next two months.

Some people are flocking to CDs as a way to lock in the 4.00% APY while it's still available. But I'm sticking with my high-yield savings account even though I know I'll earn less and less interest as time goes on.

Interest isn't the only value a bank account can offer

The biggest deciding factor for most people, including myself, when choosing between a high-yield savings account and a CD isn't the interest rate. It's the accessibility. 

Savings accounts let you withdraw your money as needed, though some limit you to six penalty-free withdrawals per month. There's usually no limit on how many deposits you can make.

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 28, 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 28, 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.

CDs, on the other hand, usually require you to give up access to your funds for the full CD term. If you take your money out early, you must withdraw it all at once. You'll lose all the interest you would've earned throughout the rest of the term, and you'll likely pay a penalty equal to several months of interest payments.

For me, the accessibility a savings account offers is too valuable to give up, even for higher interest rates. I keep my money in a Discover® Online Savings account so I can access it at any time. Even though I know its rates will fall from the 3.75% APY I'm earning now, I'll continue to earn a rate that's well above the national average. If you want to earn a competitive rate with no limitations on access, give the Discover Online Savings account a closer look. Those who open an account with the promo code TMF924 by March 13, 2025, could earn up to $200 as a sign-up bonus, depending on how much they put into the account.

Now's the time to make the switch to a high-yield savings account

Just because I'm keeping my money where it is doesn't mean that's the right decision for you. If you're still banking with a brick-and-mortar institution paying you 0.01% APY, you can definitely do better. No matter how far interest rates fall over the coming months, you'll come out ahead by making the switch to a high-yield savings account.

In addition to offering higher APYs than traditional savings accounts, high-yield accounts with online banks are also known for their lack of common banking fees. This could help you save money compared to a brick-and-mortar savings account that charges you every month to own the account.

You don't have to cut ties with brick-and-mortar banks forever if you're not comfortable. You may prefer to keep a traditional checking account so you can access cash as needed. You should be able to link this with your high-yield savings account, so you can easily transfer funds between them.

I mentioned the Discover® Online Savings account above, but if you don't think that's the right fit for you, there are plenty of other options. Check out our favorite high-yield savings accounts that could help you start growing your wealth.