Is it worth opening a HYSA account before the next Federal Reserve meeting?

Putting your cash in a high-yield savings account is an easy way to maximize your savings with compound interest. If you don’t already have one, you might want to consider one before the Federal Reserve’s upcoming policy meeting. Right now, interest rates on high-yield savings accounts are particularly high—over 5%. But they won’t stay that high for long.

In March 2022, when the Federal Reserve began its campaign to raise interest rates to reduce high inflation, savings rates began to rise in tandem with interest rates. From 2022 to 2023, the Fed raised rates 11 times, which significantly increased the cost of borrowing but also made interest rates on savings accounts much more attractive. However, as the Fed’s campaign to raise interest rates ended, so did the favorable interest rates on high-yield savings accounts and CDs.