Expert advises that rates will not decline rapidly after the Fed cut, and finding great returns on cash may still be possible.

• Experts predict that 2024 will be an excellent year for individuals who save money.
• The Federal Reserve's new 50 basis point rate cut did not change the fact that the economy is still recovering.
• To maximize your returns on cash, here's what you need to know.

In January, it was predicted that 2024 would be an excellent year for those saving money.

Despite the Federal Reserve's recent 50 basis point rate cut, record returns on cash are still achievable.

"Matt Schulz, LendingTree's chief credit analyst, stated that the rates won't change from excellent to poor suddenly. There's no need to worry if you haven't transferred your funds to a high-yield savings account or secured a CD rate yet."

The Fed's first rate cut may not provide immediate relief for your wallet, but experts suggest refinancing as interest rates fall.

Even though savers may have missed the interest rate peak, it is still beneficial to set aside money and find the best place to invest your cash savings now.

Mark Hamrick, senior economic analyst at Bankrate, stated that the biggest mistake people can make is not saving.

"The urgency of saving remains unchanged even when rates are decreasing, as the math simply changes."

Some savings accounts still offer 5% yields

Despite the Fed's rate cut, lower returns have not yet been observed at many banks and accounts.

The average annual percentage yields (APYs) on savings accounts have increased almost seven times since the Federal Reserve began raising interest rates, according to Bankrate.

Financial institutions must maintain sufficient yields to attract deposits, according to Hamrick.

According to Bankrate, as of Sept. 18, the best rates on savings accounts can be found online, with high-yield online banks offering an average yield of 5.1%.

Savers who access those rates are still beating inflation.

The 12-month inflation rate, as indicated by the consumer price index, has decreased to 2.5% in August, according to government data.

If savers do not compare rates, they may miss out on price growth, as the average yield on traditional savings accounts is only 0.5%, according to Hamrick.

Hamrick emphasized that it is crucial for individuals to prioritize their savings and compare rates for the best options.

Now is still a great time to lock in a CD

A certificate of deposit can help savers secure high rates for their cash sums that they plan to keep untouched for a specific duration.

According to Hamrick, a six-month or one-year CD may offer a 5% annual percentage yield, while three- and five-year CDs still provide at least 4% returns.

At the moment, you haven't lost much, Hamrick remarked.

It's crucial to have cash on hand in case of an emergency because CDs have less liquidity than savings accounts. If you withdraw money from a CD before the set term, you may be subject to early withdrawal penalties.

Saving money in a high-yield savings account or a CD can provide protection during uncertain times, according to Hamrick.