It's been all over the financial news: The Federal Reserve is set to meet on Sept. 17–18, and it has every intention of making its first decrease to the federal funds rate since rate increases began as a way to battle post-COVID-19 pandemic inflation in 2022.

Savings accounts and certificate of deposit (CD) rates aren't wasting any time in reacting to decrease predictions -- many of the highest paying deposit accounts have already begun to drop rates.

If you've got money set aside that you plan on investing in a CD, don't delay any longer. Act today to ensure you lock in the best CD rate and give your cash as much opportunity for growth as possible.

A real-life example

I, like many Americans, have spent a lot of time waffling lately, trying to determine the best place to keep my cash with rates expected to gradually decline over the next couple years.

Our Picks for the Best High-Yield Savings Accounts of 2024

Capital One 360 Performance Savings APY 4.25% Rate infoSee Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. Member FDIC.	APY 4.25% Rate infoSee Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
CIT Platinum Savings APY 4.85% APY for balances of $5,000 or more Rate info4.85% APY for balances of $5,000 or more; otherwise, 0.25% APY Min. to earn $100 to open account, $5,000 for max APY Open Account for CIT Platinum Savings OnCIT'sSecure Website. Member FDIC.	APY 4.85% APY for balances of $5,000 or more Rate info4.85% APY for balances of $5,000 or more; otherwise, 0.25% APY	Min. to earn $100 to open account, $5,000 for max APY
American Express® High Yield Savings APY 4.25% Rate info4.25% annual percentage yield as of September 13, 2024 Min. to earn $0 Open Account for American Express® High Yield Savings OnAmerican Express'sSecure Website. Member FDIC.	APY 4.25% Rate info4.25% annual percentage yield as of September 13, 2024	Min. to earn $0

I finally pulled the trigger three weeks ago and decided to open a 5-year CD (one I found on our very own best-of list). At the time, the best APY on our curated list for a 5-year CD was 4.30%. So I was shocked yesterday afternoon to discover that the same CD I opened just three weeks ago is now only offering 3.50% APY to new customers! That's an 80 basis point (0.80%) drop, and the federal funds rate hasn't even seen its first decrease yet.

Here's what delaying my CD opening by three weeks would have cost me in interest earned over five years based on a few different deposit scenarios:

The more you have to invest, the harder you'll be hit by a decrease in APY. In our example, what starts out as just a couple hundred dollars' difference with the smallest deposit becomes nearly a $1,000 difference by the time we reach our largest deposit.

I don't know about you, but the idea of missing out on that amount of money because I sat on the sidelines just a few days or weeks too long is hard to stomach.

Competitive CD rates still exist

The good news is this: Not every bank has dropped their CD rates just yet (or dropped them to the extent of the issuer in our example above). You still have a chance to lock in a competitive rate before the rest catch up and follow suit.

While the best of the best rates might be in the rearview mirror, if you're in the market for a 5-year CD, there are still a few banks on our list offering APYs of 4.00%. While 4.00% might not be quite 4.30%, it's certainly better than sub-4% rates, which is what's likely to happen any day now if you continue to drag your feet.

And while long-term CD rates are taking the biggest hit now (as banks protect themselves from getting stuck paying high rates well into the future), higher APYs -- those in the 5.00% range -- are still available on short-term CDs (generally those with terms under 12 months).

So if you're looking to lock your money up for just a short time, you might be in luck for snagging the top APYs today. However, those will likely also drop once the Fed begins its expected campaign of rate decreases. Whether you're in the market for a short-term CD or a long-term CD, the best time to act is now.

Hurry, but proceed with caution

Before you get in a scramble to run and open the CD with the highest APY you can find, remember: If a CD wasn't a good idea for your cash previously, it likely still isn't.

Don't let the impending rate drops spook you into making a financial decision you aren't prepared for. If you need your cash readily available to you for emergency expenses, a large upcoming purchase, vacation, home repairs or renovations, or any other reason, then it's best to keep it in a high-yield savings account where it's accessible.

Yes, savings account rates are falling, too, but at least you won't be penalized in the form of early withdrawal penalties for removing those funds whenever you need them. And if you must pay a penalty to withdraw your cash (as standard CDs require), then there's a very good chance a CD was never the best option for your money to begin with.