The Federal Reserve meets on January 29 and they'll decide whether to keep rates steady or cut them. Either decision could impact your savings account. Both high-yield savings accounts and CD accounts are currently offering rates well above 4% but rates might not remain this high for very long. While cuts to the federal funds rate won’t impact CDs directly, banks will usually follow suit and change rates accordingly.
Some cuts are expected throughout 2025 as the Fed incrementally drops rates from their 23-year high. So if you’re looking to take advantage of rates while they’re still this high, you’ll want to act soon.
