Is It Worth Getting a High-Yield Savings Account Before the Fed Meeting?
The next Fed meeting is on June 17 and 18. With a rate cut unlikely this time around, it gives savers more time to maximize returns.

Sean Jackson
With many high-yield savings accounts (HYSA) offering APYs of 4% and above, now is a great time to make the most of your savings through compound interest. If you haven’t opened one yet, it’s worth considering — especially ahead of the next Federal Reserve meeting.
After three rate cuts ended 2024, the Federal Reserve didn't cut rates at any of their meetings this year. And it's likely they also won't cut rates when they meet again next week.
Because of the likelihood of the Fed holding rates steady for now, it means you can earn a higher rate of return on high-yield savings and CD accounts.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Why it’s worth getting a high-yield savings account before the next Fed meeting
While opening a high-yield savings account before the next Fed meeting won’t lock in current rates, as the APY on these accounts fluctuates with the market, it’s still worth it to open one.
If you were to save $10,000 in an account with a 4% APY, you’d earn $400 in interest after just one year of savings, with no effort on your part. With an APY of 0.61%? You'd earn just $61 in interest.
That’s a $339 difference, and all you have to do is take five minutes to open a high-yield account, which is super simple.
And remember, with the power of compounding, the earlier you start investing, the better your returns will be.
You’ll open it the same way you’d open a traditional account, except you may have to forgo your brick-and-mortar bank for an online bank or credit union, as these are where high-yield accounts with the best rates are typically offered.
Compare rates on high-yield accounts by using our tool below:
When to consider a CD account
Unlike high-yield savings accounts, CD accounts offer a fixed APY. This means that if rates go down after you've opened a CD, your earnings won't be affected.
While opening a CD account can be a smart way to take advantage of high rates for as long as possible, there's one caveat: You'll need to make sure you don't make any withdrawals before the CD matures. Doing so will result in fees that can offset any interest earned (unless you have a no-penalty CD account).
You can compare CD rates by using our tool below. Before opening one, however, make sure you choose a maturity date that makes sense for you financially.
The bottom line
Taking advantage of today’s high-yield savings and CD account rates can help you maximize your earnings. Although the Fed is expected to hold rates steady at its upcoming meeting, the possibility of future cuts could lead to lower returns on savings accounts.
By acting now, you can secure a competitive rate and make the most of your savings before any shifts in monetary policy impact future returns.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.
- Sean JacksonPersonal finance eCommerce writer
-
The $33,000 Retirement: One Man's Surprising Path to Financial Freedom at 61
Forget what society tells you, even with less than $1 million, you can be happy in retirement.
-
The Best Aerospace and Defense ETFs to Buy
The best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Walmart Takes on Prime Day With Competing July Deals Event
Walmart is launching its own multi-day sales event to rival Amazon Prime Day — and it could be a smart time to shop, even if you're not a member.
-
7 Golf Course Destinations to Vacation Away from the Crowds
Beat the growing crowds of new golfers at these golf course destinations off the beaten path.
-
A Financial Expert's Three Steps to Becoming Debt-Free (Even in This Economy)
If debt has you spiraling, now is the time to take a few common-sense steps to help knock it down and get it under control.
-
I'm an Insurance Expert: This Is How Your Insurance Protects You While You're on Vacation
Here are three key things to consider about your insurance (auto, property and health) when traveling within the U.S., including coverage for rental cars, personal belongings and medical emergencies.
-
The Best FSA or HSA-Eligible Prime Day Deals You Can Shop Now
Double down on savings by taking advantage of these early Prime Day deals that are FSA or HSA eligible. Save on fitness trackers, air purifiers, baby gear and more.
-
Nissan Recalls Over 440,000 Vehicles for Risk of Engine Failure
Hundreds of thousands of cars are being recalled over safety concerns. Here's how to check if your vehicle is affected and what steps to take next.
-
Five Costly Medicare Myths
Signing up for Medicare can be complicated, and mistakes can be costly. Let's demystify these five Medicare myths to avoid expensive penalties.
-
These Cities Have the Most Dangerous Drivers — And It Could Cost You
A new list shows the cities where you're most likely to encounter collisions, making it a dangerous place to drive. That factor could also raise your insurance costs.