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Live: Rate Cuts = HYSA Pay Cuts?
For the last two years, high-yield savings accounts (HYSAs) have been the financial girl-next-door — she’s sweet, she’s always there for you, and she’s quietly giving you a 4-5% interest rate (the simile had its time).
With the Fed officially cutting rates, those beautiful yields may be numbered. Banks don’t hesitate to trim payouts when rates go down, and some HYSAs are already showing lower yields.
For context: the Central Bank of the US has been keeping rates relatively steady the past couple months, but they recently cut their rate on 9/17/25. This will likely lead to lower interest rates on loans, but also may lead to banks offering lower rates on some of their products such as high-yield savings accounts.
That doesn’t mean HYSAs are suddenly bad. Just like the girl-next-door, they’re still secure, practical, and way better than leaving money in a traditional savings account paying 0.01%. Even if the rate slips from 5% to 3.5%, you’re still earning decent money on cash that’s just sitting.
But there are other ways to get paid for making your money stay like good dollar bills. HYSAs might still be the move for your emergency fund or short-term savings — but if you want to lock in stability or diversify, let’s take a look at CDs.
Learn: Certificates of Deposit (CDs)
A mantra I have is that you should strive to make or save money when you earn, hold, and spend money. If you have any questions on how to make or save when you earn or spend respond to this email! For now we’re going to focus on making money when you hold it.
CDs are like a “savings contract” with your bank. You agree to lock up money for a set period — 6 months, 1 year, even 5 years — and in exchange, the bank promises you a fixed interest rate. Unlike HYSAs, your yield won’t bounce around with the Fed’s decisions. It will stay consistent for the lifetime of the contract.
And the rates can be solid. After a short search of available CDs I found this one from Capital One and this one from Goldman Sachs that offer 4.0% and 4.25% APY respectively.
But there are some catches to be aware of. If your HYSA is the girl next door, then your CD is the partner who could be perfect for you, but could also potentially cheat on you with your best friend.
The CD can be a cunning and nefarious yet kind and appreciating financial product.
Because some of the traits that make the HYSA so pretty are lacking in the CD.
If you pull your money out of a CD before your term ends, you’ll likely face penalties.
If you don’t pull your money out after the CD period ends, you can be renewed into another CD, and your money can be locked up again.
So if you choose to go the CD route, be mindful of the maturity date. Even if you’re ok with being re-enrolled into another CD, you should keep track of the dates when you can pull your money out so that when you need to, you don’t miss your window.
Make sure to compare your CD rate to your HYSA rate as well. There is no need to lock up your money if you can earn the same rate from an HYSA.
Leverage: Secure Growth Tools
There are several tools that can help you earn while your money sits.
CDs, HYSAs and Treasury Bills are all pretty secure options that offer a solid return on your money over time. Here’s when you might use one vs. the other.
CDs → Best for money you won’t need immediately, and a predictable rate. Think: a chunk of savings you’re setting aside for a car or a wedding in 1–3 years. Just remember to pull it when the CD ends.
Treasury Bills → Another solid, relatively safe option that can offer yields similar to CDs or HYSAs. That said, the value of these can change with the economy and rate shifts.
HYSAs → Best for liquidity (access to your cash). Your emergency fund, your emergency-Jabba-the-Hutt collectible fund, or cash you want instant access to while still earning interest.
Gif by starwars on Giphy, These puppies go fast, best to have some cash lying around so you can seize them whenever you get the chance.
Note: I have not used CDs or Treasury Bills. Because the rates have been so high with HYSA’s in recent years, I chose the savings account route over other comparable options above because they often paid better and were more flexible. That said, rates may lower, and these other options may become better with time.
Also, quick reminder that I am not sponsored by any of the tools I note here. I wish I was! These are just the tools I use.
Launch!
Make sure you earn while your money sits. Even if interest rates are falling.
Whether it’s a CD, Treasury Bill, or HYSA, if you have some extra cash, store it somewhere where it will make you more extra cash.
The point isn’t to chase the single highest number — it’s to make sure you’re leveraging your money to do all it can for you. ;)
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