Top Places to Park $10K (or More) as Rates Start to Fall

a man shakes and listens to his piggy bank — (Image credit: Getty Images)

Knowing where things head can help you plan where to store your money. The Federal Reserve cut rates at its September meeting, and the smart bet is they will again when they meet later this month.

Why are they cutting rates? The jobs reports indicate a significant cooldown in hiring, with only 27,000 jobs added in the last four months. And one way to stimulate employment is with rate cuts, since it lowers borrowing costs for companies.

Meanwhile, savers must navigate a future with lower returns. Thankfully, if you have significant cash (think $10,000 or more) to store somewhere safe, there are some smart options to consider.

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Use a CD to shield against future rate cuts

A certificate of deposit is one surefire way to fight back against rate cuts. CDs offer fixed interest rates, so from the minute you sign up and fund the account through its maturity date, you'll receive the same rate of return.

Now, the question becomes which CD works best for you? Long-term options, like the best five-year CD rates, offer returns outpacing inflation.

Our top choice, SchoolsFirst Federal Credit Union, has a 4.15% APY. With a $10,000 deposit, you'll earn $2,254.52. Not bad for a risk-free option.

Using this Bankrate tool, you can compare and find the best CD options fast:

But there's a catch with long-term options. If your finances change in the future and you need access to that cash, the penalties for breaking open the CD can be steep. How steep? You could lose between six months to a year of interest earned. That's potentially hundreds to thousands of dollars.

Therefore, you want to make sure you can part with cash for that long. And if you don't, short-term options could be a better solution.

Grow your savings with flexibility

A woman cheers as she gazes into her computer screen

Thankfully, CDs come in shorter terms too. For savers with larger deposits (think way more than $10,000), I would recommend a jumbo CD. A jumbo CD works like a regular one, only you have to deposit at least $25,000 to $100,000.

What I like about them is that you can earn a lot of money in a short time. To demonstrate, EFCU Financial has a jumbo CD that earns 4.35% APY for one year with a minimum deposit of $100,000.

In that one year, you could earn $4,350 in interest with a $100,000 deposit. Just as important, you have access to your cash in a year. That means if inflation continues to rise, you have the opportunity to switch to other investments that might offer a better return than a CD.

Along with CDs, a high-yield savings account could also be a smart move. The best high-yield savings accounts come with returns outpacing inflation for now, no account fees and quick access to your cash whenever you need it.

You can find the right account for you by using this Bankrate tool:

However, I would caution keeping your money in one long-term. These accounts feature variable interest rates, meaning when the Fed cuts rates, your returns are lower. And with one to two possible rate cuts happening before the end of 2025, the APYs on HYSAs could nose-dive, creating a situation where you're barely keeping ahead of inflation.

Ultimately, the changing landscape of upcoming rate cuts and inflation will impact savers. If you have an emergency fund established and have significant savings you want to offload, then choosing a secure option now helps maximize earnings while rates are still high.

And the best way to do this is with a CD. CDs offer some protection from rate cuts, allowing you to strike while the iron is hot. Just remember to choose a term that works best for your cash flow, so you avoid costly early termination fees.

Sean is a veteran personal finance writer, with over 10 years of experience. He's written finance guides on insurance, savings, travel and more for CNET, Bankrate and GOBankingRates.