Make the most of the Fed's upcoming decision by doing these things ASAP. Deagreez/Getty Images
Today's Federal Reserve meeting may not be on your radar, especially with the headlines full of economic turmoil. But the Fed's actions have real consequences for your money, and knowing how to prepare can help you reap the rewards -- and minimize your losses.
Since the central bank is expected to hold interest rates steady at its July 29-30 meeting, savings (and borrowing) rates should stay high for the time being. But policymakers may start cutting rates as early as September. The sooner you make these key moves with your money, the better the position you could put yourself in financially.
Read more: The Clock's Ticking for Your Sweet Savings Rate. Here's What Could Happen if the Fed Cuts Rates This Fall
Make these 4 money moves now
Make the most of the Fed's upcoming decision by doing these things ASAP.
🤑 Lock in a high APY with a certificate of deposit
CDs are unique deposit accounts that come in terms ranging from a few months to several years. You need to leave your money in the CD for the entire term to avoid early withdrawal penalties. In exchange, the bank or credit union pays you a fixed return based on the interest rate in effect when you open the CD. Some of the best CDs today offer annual percentage yields of up to 4.5%.
Because the Fed is expected to cut rates in the fall, locking in a higher APY now can protect your future earnings if rates drop. Though banks tend to follow the Fed's lead when setting CD rates, APYs have already started falling and will likely drop more in the fall.
"Knowing the Fed would like to get two interest rate cuts in before the end of the year, I would anticipate both CDs and savings accounts to begin offering less interest in the near term," said Dana Menard, CFP and lead financial planner at Twin Cities Wealth Strategies. "If you do not need to access the funds, I would lock in the higher rates being offered today."
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