The Federal Reserve on Wednesday announced its first interest rate cut of 2025, and the central bank hinted at two more coming before the year’s end.
While this is welcome news for borrowers, it’s not so good news for savers. Since banks look to the Fed’s benchmark rate when setting their own interest rates for consumers, this means that the returns on savings accounts will start trickling down, too.
But even though the return on my high-yield savings account will likely go down, I plan on keeping it open. Here’s why.
Why I’m keeping my high-yield savings account
People often flock to high-yield savings accounts in a rising-rate environment. Though that’s not the case today, I can still make a case for keeping my account.