3 places to move $10,000 before the Fed cuts rates

The recent era of high returns on savings accounts, already on a decline, is likely to be further diminished this week.

With the chances of an interest rate cut from the Federal Reserve near 100% now, savings vehicles won’t be immune. And with the average rate on a traditional savings account just 0.40% currently, that means the interest-earning potential associated with those accounts will fall closer to zero than it already is. However, that doesn’t mean that savers are totally out of options, either.

And, if you have a large, five-figure amount of money, such as $10,000 at your disposal now, you’ll want to be strategic with where you put it. For starters, this means moving it out of a traditional savings account, as the interest-earning potential there is essentially nonexistent. There are a few other homes for your money, however, where it can still be profitable. Below, we’ll detail three specific places you can move $10,000 to now, before the Fed cuts rates again.

Start by seeing how much you could earn with a fixed-rate CD account here.

3 places to move $10,000 before the Fed cuts rates

Rate-cutting action from the Fed requires quick and strategic thinking for savers who have benefited from high returns in recent years. Here are three places, either individually or in combination with one another, for savers to move their $10,000 now:

A certificate of deposit (CD) account

Rates on CD accounts can still be found in the 4.50% range now, although that could change post-Fed rate cut. Still, it will take some time and multiple cuts to diminish the value of a CD. 

And with CD rates fixed, meaning that they will remain the same for the full CD term, this is arguably one of the very best places to keep your money now. Not only will it be protected against market volatility, but with a $10,000 deposit, you stand to earn hundreds and possibly thousands of dollars in interest, depending on the rate and term you secure now. 

Get started with a high-rate CD account online now.

A high-yield savings account

High-yield savings accounts come with rates competitive with the top CDs, but with one major caveat: Rates on this account type are variable and likely to decline as rate cuts are issued. So, your interest-earning potential will likely diminish over an extended period. 

Still, rates here are high now and unlikely to drop precipitously anytime soon. Additionally, you’ll be able to maintain access to your funds in a way you won’t if you were to lock them in a fixed-rate CD account. And, for many savers, this is a critical difference as they will want to maintain flexibility, especially with an amount as large as $10,000 and particularly in an economic climate that’s evolving like the current one.

Learn more about your high-yield savings account options here.

A money market account

Money market accounts also come with high rates, and those rates are also variable, like high-yield savings accounts. But this account does come with a feature that the other two on this list do not: the ability to write checks. These hybrid accounts could offer the mix some savers are looking for as they combine high rates and the ability to bank as you would if the $10,000 were kept in a traditional savings account. Still, rates here are poised to change based on the Fed and other factors, so that will need to be accounted for by savers looking to secure as much interest as possible right now.

The bottom line

Don’t let $10,000 of your money dwindle in a low-earning traditional savings account that’s positioned to become even less profitable with rate cuts looming. Instead, consider moving this money into one of these accounts or even splitting the funds among multiple ones. This will allow you to still earn a high rate while making deposits and withdrawals as you already have been. Just be proactive, as today’s rates are likely to change soon, regardless of which strategy you ultimately settle on.