By Margarette Burnette, Spencer Tierney, NerdWallet

The Federal Reserve just delivered the rate cut that Wall Street predicted, trimming the federal funds rate by 0.25 percentage points. The new target range is now 4.00% to 4.25%. While the move is likely to make loans cheaper, it will affect more than just debt. People with money parked in high-yield savings accounts will probably see their rates fade as well.

When the Fed lowers rates, banks often follow by lowering savings yields. It may not be a huge drop right away, but annual percentage yields (APYs) for today’s top savings accounts and certificates of deposit — which are north of 4% — will probably decline. If you’re not already earning a high rate on your money, you may want to act soon.

High rates will dip but not disappear

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