Federal Reserve Cuts Rates: What It Means for Savings Accounts ...

Dec 3, 2024 · Why the Fed cut rates. In 2022, inflation was high, at one point surpassing 9% — the highest inflation rate seen in almost four decades. To combat this, the Fed started to raise …

CouponFollow Extension

9%
OFF

Federal Reserve Cuts Rates: What It Means For Savings Accounts ...

3 weeks from now

Dec 3, 2024 · Why the Fed cut rates. In 2022, inflation was high, at one point surpassing 9% — the highest inflation rate seen in almost four decades. To combat this, the Fed started to raise …

wsj.com

75%
OFF

Fed Cuts Interest Rates For First Time In 4 Years: Here’s What It …

3 weeks from now

Sep 18, 2024 · It’s the first cut to the federal funds rate since March 2020, bringing rates down to 4.75% to 5% from the 5.25% to 5.5% range they’ve sat since last July, the highest rates had …

forbes.com

5%
OFF

How Far Will Savings Rates Fall If The Fed Cuts Rates? Here's What ...

3 weeks from now

Apr 11, 2024 · So if a high-yield savings account currently has a 5% APY, he says, that could mean savings rates would fall to 4.25% after the three expected Fed rate cuts in 2024. Find …

cbsnews.com

5%
OFF

The Fed Paused Rates. Here's What That Means For CD And …

3 weeks from now

Jan 29, 2025 · The Federal Reserve paused rates at its January meeting. Today's best savings accounts and CDs offer up APYs as high as 5%. Rate cuts are expected later this year, so …

cnet.com

50%
OFF

How Fed Interest Rate Cuts May Affect High-yield Savings Accounts ...

3 weeks from now

Apr 2, 2024 · Today, with the target range for the federal funds rate now 5.25 to 5.50%, a number of banks are offering savings accounts that pay nearly that much in interest.

marketplace.org

75%
OFF

How Federal Reserve Rate Cuts Impact Your Money: 5 Key …

3 weeks from now

For the first time in four years, the Federal Reserve cut interest rates by 0.5 percentage points in September 2024, bringing rates to a target range of 4.75% to 5%. This might not sound like a …

bellco.org

6%
OFF

Inflation Worsened In December. What It Means For Fed Rate Cuts.

3 weeks from now

6 days ago · The Federal Reserve’s preferred inflation gauge, the PCE price index, rose 2.6% in December from a year earlier. The Fed is on hold with interest rates until the inflation picture …

barrons.com

FAQs about Federal Reserve Cuts Rates: What It Means for Savings Accounts ... Coupon?

How will the Fed's interest rate cut affect your savings account?

A look at how the Fed's interest rate cut could affect your savings accounts, credit card rates and more. With the Fed pushing rates lower, it should be easier for banks to loan money and make buying a house cheaper. ...

Will fed cut interest rates?

Once the Fed does cut rates, though, you can expect your bank to cut your rate too. Even so, chances are that high-yield savings accounts will still be high yield, at least for a while. “A few cuts is not going to get us anywhere near the zero-rate environment that we were in for so long,” Fedyk said. ...

Why did the Federal Reserve cut interest rates?

On Sept. 18, the Federal Reserve announced a rate cut. This decrease — the first in more than four years — was made in response to cooling market conditions. For savers, it will also mean a gradual dip in savings rates. Here’s what to know, what to consider and how to decide what your next savings moves should be. ...

What if the Fed cut the funds rate?

“If the Fed were to cut the Fed funds rate, bonds could go either way. It would be the same if they were to raise rates. There are a lot of unknowns at the moment,” said Melissa Cohn, regional vice president at William Raveis Mortgage. ...

Will interest rates go down if the Fed cuts benchmark rates?

“Even though interest rates will come down as the Fed cuts benchmark rates, the top-yielding savings accounts will continue to pay returns that well exceed targeted inflation,” says Greg McBride, CFA, Bankrate chief financial analyst. ...

How will the FED's rate cuts affect banks?

While many experts agree on the pace of the Fed's rate cuts, how that will affect banks isn't as straightforward. For example, some banks might maintain higher rates as a way to attract customers, even if the Fed starts cutting rates, while banks that aren't as eager for more deposits might feel more comfortable cutting rates. ...