The recent Federal Reserve rate cut has created a mixed bag for savers and borrowers alike. While borrowers benefit from lower rates, savers are facing a decline in interest rates for high-yield savings accounts and certificates of deposit (CDs). As more cuts loom, particularly around November 7, 2024, now is the time to secure favorable rates. Currently, the Barclays Online 6-Month CD offers an impressive 5.00% APY with no minimum deposit, making it an attractive option for those looking to earn interest without tying up their funds for long. For those willing to commit for a longer term, the Synchrony Online 5-Year CD at 4.00% APY and Alliant's 1-Year CD at 4.50% APY are also solid choices. However, it's important to keep in mind that while CDs offer higher rates, they come with the drawback of limited liquidity. High-yield savings accounts, like Discover's 4.10% APY, provide a more flexible alternative without sacrificing too much interest.
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