$10,000 CD account moves to make before a September Fed rate cut
The interest rate cut that's been anticipated by millions of Americans for all of 2025 finally seems to be happening.
After the Federal Reserve kept rates frozen for the first eight months of the year, the central bank is poised to issue a small but important cut when it meets again this September. And while a 25 basis point reduction may have a negligible impact for borrowers, it will undoubtedly contribute to lower returns for savers, perhaps in a significant way over time.
With rates on high-yield savings and certificate of deposit (CD) accounts already lower than they were at this point in 2024, then, savers still hoping to reap big returns will need to be more strategic in their approach. And that's especially true if there's a larger, five-figure like $10,000 at play.
Not only will an early withdrawal penalty on a CD account of this size be costly, but putting it in the wrong account with the wrong rate could effectively close this current high-rate window of opportunity for the foreseeable future. So, savers considering a $10,000 CD account, in particular, will need to be judicious in their approach. Below, we'll break down three moves they should consider making before a September Fed rate cut is finalized.
Start by seeing how high of a CD rate you could currently lock in here.
$10,000 CD account moves to make before a September Fed rate cut
With a rate cut largely expected to be announced on September 17, at the conclusion of the Fed's next meeting, there's not much time to take action. It behooves savers, then, to closely consider these three moves now:
See if you can deposit more (or need to deposit less)
Sure, a $10,000 CD account can net you hundreds and potentially thousands of dollars, depending on the term and rate you can secure now. But with rate cuts looming and this high-rate opportunity potentially disappearing in the near future, it makes sense to crunch the numbers to see if you can deposit even more. A bigger deposit or the same amount for longer, after all, will earn you more interest.
At the same time, $10,000 could be too much for some savers, especially if they choose a long-term CD which matures in more than one year. So start by seeing if you can deposit more or if you need to deposit less, to actually achieve your savings goals.
Learn more about your current CD rate offers now.
Shop directly with online banks
It's always smart to shop around to find the banks offering the highest rates and best terms. But there's not much time to act this month. And, with the reality being that online banks generally offer higher rates than those with physical locations, use your time strategically and instead skip those lending institutions and shop directly with online banks, instead. In a different climate, you can take more time to compare your options. This isn't that climate.
Don't wait much longer
CD rates follow the Fed's monetary policy but not directly and not on the same days and dates. In other words, thinking you have until September 16 to lock in a high rate may be an expensive mistake. Lenders can, and often will, adjust rates prior to any formal rate actions taken by the Fed. So, whatever you do, don't wait too much longer. It wasn't that long ago that rates on these accounts were barely hovering over 1%. Take advantage of CD rates around 4.50%, then, promptly.
The bottom line
A $10,000 CD account needs to be built strategically, especially now and critically before a Fed rate cut is formally issued. By taking the above three steps, savers can offset lower rates, grow their interest earning potential and, importantly, exploit this moment in the interest rate climate while it's still readily available.
