20. September 2025
Admin
Best Cash Accounts After the Fed Cut Rates
Following a recent interest-rate cut by the U.S. Federal Reserve, there are still several savings accounts, CDs, and treasury products offering standout returns. If you're parking cash, here’s where you can get the most yield “for now.”
([Investopedia](https://www.investopedia.com/the-fed-just-moved-on-rates-these-accounts-now-pay-the-most-on-your-cash-11814036))
Quick Insight: Even though the Fed has cut rates, some accounts continue to offer **5.00% to 5.50% APY**—especially short-term CDs. If you move quickly, you may lock in strong returns.
1. Top Rates to Watch
• Best‐in-class certificates of deposit (CDs) are offering up to **5.50% APY** (often capped by small-deposit limits).
• High-yield savings & money market accounts are paying ~ **5.00% APY** in many cases.
• U.S. Treasuries and “I Bonds” also provide competitive yields — Treasuries up to ~ **4.75%** and I Bonds adjusting near ~ **3.98-4.00%** depending on purchase date.
2. What Deposits Earn Depending on Amount
• Smaller-balance accounts ($5,000 or less) often get the very highest APYs.
• As balances increase, top rates may drop, or accounts may have stricter requirements.
• Money market and brokerage cash management accounts offer ~ **3.5%–4% APY** in many cases for larger deposits.
3. Pros & Cons of Each Option
• **CDs / Fixed Term Products** — lock in rate; good if you don’t need immediate access. But **penalties apply** for early withdrawal.
• **Savings / Money Market Accounts** — more liquidity; rates may drop if Fed cuts again.
• **Treasuries / I Bonds** — often lower risk; I Bonds adjust with inflation; treasuries may offer yield but could have holding periods.
• Always check fees, minimum deposit requirements, and whether the rate is “introductory” or “promotional.”
Final Thoughts
If you have idle cash, now's a good time to shop around: some fixed-term accounts (like CDs) still offer strong yields.
But because rates are likely to change (downward), locking in for even a short fixed term can make sense if your money isn’t needed immediately.
Don’t forget to factor in inflation — real returns matter, not just nominal yields.
Tip: Always verify whether the quoted annual percentage yield (APY) is fixed, promotional, capped by balance, or has other conditions before depositing large sums.
.jpeg)
