The 4 Best Places To Park Cash As Rates Drop (2025)

This video covers the Best Places To Keep Cash As Interest Rates Drop. The Federal Reserve has recently cut interest rates by 50 basis points (0.5%), they expect to continue in the upcoming future, and the rates you can earn from short term savings tools like high yield savings accounts and money market funds have already declined. Here are the best places to consider and why. - Enjoy!

📖 Free Savings Account Mastersheet: https://dannysully.link/SavingsMaster...
🌟 Top Savings Products Through Raisin: https://dannysully.link/RaisinProducts

Top Financial Products:
🏦 High Yield Savings Accounts: https://dannysully.link/Savings
📈 Investing Platforms: https://dannysully.link/Investing
🔒 Certificate Of Deposits (CDs): https://dannysully.link/CDs

Resources:
📚 Free Learning Guides: https://dannysully.link/FreeGuides
🗞️ Newsletter: https://dannysully.link/Newsletter
🔑 Patreon (My Portfolio & Exclusive Content) -   / dannysully  

🎥 Relevant YouTube Videos 🎥
   • Certificate of Deposits (CDs) For Beg...  
   • Treasury Bills For Beginners: The Ult...  
   • Money Market Funds For Beginners | Th...  
   • How To Buy Treasury Bills For Beginne...  
   • Fidelity Money Market Funds For Begin...  
   • Ultimate Beginners Guide To High Yiel...  
   • 5 Things You MUST KNOW About High Yie...  
   • The 5 BEST High Yield Savings Account...  
   • Do This EVERY Time You Get PAID (Opti...  
   • Stock Market Investing  

⏰ Timestamps ⏰
00:00
01:10 High Yield Savings Accounts
04:36 CDs
07:40 Government Bonds
09:43 Money Market Funds

How do these interest rate cuts affect borrowing costs?
As interest rates decline, borrowing costs for various loans, such as auto loans, student loans, and mortgages, are expected to decrease. This means they are becoming cheaper for those looking to borrow.

What should I know about the impact on high-yield savings accounts?
With the Fed cutting rates, the interest on high-yield savings accounts is also likely to decline. For example, Wealthfront recently reduced its rate from 5% to 4.5%. However, high-yield savings accounts still offer better returns compared to traditional savings accounts, which typically pay around 0.01%.

Why choose a high-yield savings account over a traditional one?
Traditional savings accounts offer minimal interest, making them less effective for growing your savings. High-yield savings accounts, like those offered by SoFi at 4.5% APY, provide significantly higher interest earnings. With a high-yield account, a $10,000 deposit could earn you $450 in a year, compared to just $1 with a traditional account.

What are CDs, and how do they work?
CDs are savings tools that offer guaranteed interest rates over a fixed term, which can range from a month to several years. They are FDIC insured but come with penalties for early withdrawal. Creating a CD ladder can provide flexibility and access to your funds especially as long term rates rise compared to short term. Currently we are in an inverted yield curve but in time, this could change and a cd ladder would be beneficial.

What are money market funds?
Money market funds are low-risk mutual funds that invest in high-quality, short-term debt instruments. These are used in brokerage accounts and provide a convenient way to park cash while earning interest, although they are not FDIC insured. Interest rates can fluctuate with market conditions.

🔔 Don't forget to subscribe with notifications on and hit that like button!

Disclaimer: Certain links on this website lead to products or services that may earn Danny Sully an affiliate commission or referral bonus. As a member of an affiliate sales network, Danny Sully is compensated for directing traffic to partner websites, which may affect the placement or visibility of some products on this site. The information provided in this video is accurate as of its posting date, though some of the offers mentioned may no longer be active.

This content is for entertainment only and does not constitute legal, tax, or financial advice. It is for general informational purposes. The presenter is not a licensed professional. Viewers should consult their attorney, accountant, or financial advisor for advice on specific legal, tax, or financial issues.