Where to Find Yield in a Changing Market

For cash savers riding high on the “golden age” of certificates of deposit (CDs), the sun is starting to set. With the Federal Reserve poised to initiate its first rate cut since 2024, the tide is already turning: top CD yields, which soared past 5% just months ago, are beginning to slip. As MarketWatch reports, experienced advisors and thoughtful clients are re-evaluating their playbook—looking for fresh ways to capture return without taking on added risk.

🎯As I shared with MarketWatch, this turning point is no time for complacency. With the era of high-yield CDs drawing to a close, it’s time to explore alternatives. When working with a client whose CD matured, I opted to move the proceeds into a multi-year guaranteed annuity from a strong insurance company, locking in a rate north of 5%. For money that can afford a bit of a “time-out” and doesn’t need FDIC insurance, these annuities represent a powerful (if underappreciated) tool—just make sure to due your diligence on the insurer’s financial strength and understand the surrender terms.

For those with shorter-term needs, don’t discount the value of staying liquid, even if yields dip. Building emergency reserves in high-yield savings and money markets remains critical. As always: “When you need your money, you need your money. You don’t need questions.”

So is it time to completely abandon CDs? Not entirely. Even with rates heading down, CDs remain a safe, simple home for near-term cash—especially where FDIC insurance is non-negotiable. But as I caution clients, what will you do when that CD matures and the next best offer is a full percent lower?

Bottom line:

The golden age for cash savers may be fading, but attractive options persist for those willing to look beyond yesterday’s headlines. Now is the moment to audit your cash strategy: compare after-tax yields, consider annuities and Treasurys, and be prepared to move with the market rather than against it. As Fed cuts arrive, flexibility and an open mind—not nostalgia for last year’s 5% CDs—will keep your money working harder (and smarter).