Financial Planners Are Telling Clients to Do This Before It’s Too Late

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Man thinking about money moves
Asier Romero /

Time might be running out to make an important financial move.

Right now, interest rates are high. But the U.S. Federal Reserve has indicated that it plans to cut its target federal funds rate later this year.

Higher rates translate into a better return on savings accounts and certificates of deposit (CDs). If rates fall — and the Fed has suggested that a number of rate cuts remain on its agenda — returns on these savings vehicles also are likely to tumble.

As a result, 41% of Certified Financial Planners have told clients to move funds into high-yield accounts such as money market funds and CDs, according to the 2024 CFP Professionals Financial Outlook Survey of more than 670 financial advisors.

If you really want to lock in your rate, a CD is a much better choice. Your CD rate will remain in place for the length of the CD’s term, whether that is one year, five years or some other period. Even if the Fed cuts rates during that time, your CD rate will remain unaffected.

On the other hand, if you pour money into a high-yield money market or savings account, your rate will likely change if the Fed starts cutting rates.

As with any financial decision, putting money into a high-yield account or CD might not be the right move for everyone. But if this sounds like a good idea to you, shop around for the best rate.

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