The Federal Reserve held interest rates steady again at its July meeting, resisting pressure to cut rates despite growing signs of an economic slowdown. The federal funds rate still remains at a high level when looking over the past decade—between 4.25% and 4.50%—keeping the window open for savers to earn elevated returns on high-yield savings accounts (HYSAs) and certificates of deposit (CDs).
But that window may not stay open for much longer. With the Fed’s next decision scheduled for mid-September, and market analysts expecting a rate cut before the end of the year, locking in high rates now could be a savvy move for those looking to grow their cash with minimal risk.
The July Fed Decision: No Change For Now
At its July meeting, the Federal Reserve held rates steady for the fifth time, pointing to stubborn inflation and a desire to gather more data ahead of its September decision.
But cracks are starting to show inside the Fed. Several Fed officials are now signaling it might be time to start cutting rates, especially as inflation cools and job growth loses steam. This shift adds attention to the September meeting, which could mark a turning point toward a more dovish policy.
In the meantime, savers can earn better returns on their cash. High-yield savings accounts offer rates well above most regular savings accounts, making them ideal for emergency funds or short-term savings you need quick access to.
If you’re willing to set money aside for a bit longer, certificates of deposit usually pay even more—but you’ll need to keep your cash tied up for a set period, like six months or a year. Both are smart ways to take advantage of today’s higher rates while keeping your money safe.
What This Means for Savers: Lock In While You Can
With interest rates still at historically high levels, now may be your best opportunity to lock in top-tier APYs before the Fed makes its next move. If you want to start with a HYSA, several strong options are available, including the American Express® High Yield Savings Account or the Capital One 360 Performance Savings Account
.
- American Express® High Yield Savings Account: This account offers a 3.50% APY with no minimum deposit and zero monthly fees. Plus, with daily compounding interest, your savings can grow quickly, and interest is deposited into your account each month.
- Capital One 360 Performance Savings Account
: This is another solid option, offering 3.50% APY with no minimum deposit requirement on top of no monthly maintenance fees—ideal for anyone looking to dip their toes into a HYSA without needing a large starting balance.
If you’re considering a CD, here are some options to explore.
- Discover® 6-Month CD: This CD offers a 4.20% APY with no minimum deposit requirement. It’s a simple way to earn higher interest, but you’ll have to let your cash sit for six months to avoid any early withdrawal penalties.
- Marcus by Goldman Sachs High-Yield Certificates of Deposit: Marcus by Goldman Sachs offers a six-month CD with a 4.40% APY, but this option does require a minimum deposit of $500.
Keep in mind that CDs also come with terms longer and shorter than six months. Banks usually offer varying APYs depending on the CD’s term length. For example, Marcus by Goldman Sachs High-Yield Certificates of Deposit offer a 4.40% APY for a six-month term and a 4.20% APY for a 12-month term.
Rates and details accurate as of 08/4/2025
Even if the Fed cuts the federal funds rate later this year, you’ll still earn those higher rates for the term of your CD. With a HYSA, your interest rate is variable, so it is best to take advantage of a higher interest rate now so you earn more interest if your account’s interest rate takes a dive.
Bottom Line
The Fed held off on cutting interest rates in July, but September could bring a different story. While no one can predict policy changes with total certainty, current economic signals point toward at least one rate cut before the end of the year.
For savers, that means time is of the essence. Locking in a high APY on a CD or moving funds into a high-yield savings account can help you take full advantage of today’s elevated rates before they begin to drop in response to the Fed moving in the opposite direction.
As always, your savings strategy should match your personal goals. But if you’re aiming to grow cash with little to no risk, the time to act is now.
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