Markets are bracing for the Fed to start cutting interest rates soon. When that happens, savings rates almost always follow.

So if you've been thinking about locking in a CD, this may be your last shot at a rate that starts with a "4."

And yet… I'm still not biting.

Why I'm not locking in a CD right now

Not gonna lie -- getting a guaranteed 4.00%+ return is tempting. But the trade-off is what stops me.

Most CDs require you to lock up your money for 6 months, 1 year, or more. And if you take it out early, you'll usually lose interest (or even some principal) with a withdrawal penalty.

Right now, I'd rather keep my cash liquid. There are a few reasons why:

• I want flexibility in case I need to use the money at the drop of a hat
• If I'm going to tie up money long term, I'd rather invest it and aim for higher returns
• I'm already earning 4.00% APY in my high-yield savings account (HYSA).

To me, that little extra yield from a CD isn't worth the loss of flexibility.

What I'm doing instead (for now)

I've got all my emergency funds and short-term savings cash in a high-yield savings account. About $25,000 in total right now.

It's safe and protected with FDIC insurance, and earning 4.00% APY.

Based on my current balance and rate, I'm likely to earn about $1,000 in interest this year. Way more than what a traditional bank pays.

And yes, I realize my 4.00% APY might get lowered any day now. But that's OK with me. I'm earning a solid interest rate with no lock-ins.

When a CD does make sense

CDs aren't bad -- they're just not the right move for me right now.

If you've got mid-term financial goals (like buying a house in the next few years), or money you absolutely don't need short-term, a CD might make sense.

If you do go the CD route, my advice would be to:

1. Compare rates across different terms and banks
2. Double-check the early withdrawal penalties
3. Only lock in money you won't need to touch

Oh, and act soon! Because banks are already starting to lower rates in anticipation of cuts coming. You can check out all the top banks and CD rates available here.

So…what's your play?

If you like the idea of locking in a guaranteed return and don't need the cash for a while, a CD could still be a smart move. Just don't wait too long. These 4.00% rates are already fading.

But if you're like me and want to stay flexible, a high-yield savings account might be the better call for now. I'm earning 4.00% APY with zero commitment -- and that freedom matters more to me than squeezing out a few extra bucks.

It's not about chasing the "best" rate. It's about finding the right fit for you, your timeline, and your money goals.