According to Wednesday’s latest report from the Bureau of Labor Statistics, inflation continued to cool in August. Now at 2.5%, the rate is just half a percentage point above the Federal Reserve’s target 2% goal. That reduction essentially guarantees that the Fed will cut its federal funds rate when it meets next week. Currently frozen at a range between 5.25% and 5.50%, many expect the Fed to drop the rate by 25 basis points to start – and possibly issue additional cuts when it meets again in November and December.

While those reductions will undoubtedly be welcomed by borrowers who have coped with higher rates on everything from credit cards to mortgages, they will be less beneficial for savers. While lenders don’t directly follow what they offer on savings accounts, a declining federal funds rate will cause returns on interest-earning vehicles to drop, too. And it will happen soon.

Understanding this, then, savers should make some proactive moves to take advantage while they still can. Below, we’ll detail three specific savings accounts they should consider opening now.

Start by seeing how much more you could be earning with a top CD here.

3 savings accounts to open while inflation cools

Here are three savings accounts to consider opening now, either individually or in combination with one another:

Certificate of deposit (CD) account

Rates on CDs are still high now. Depending on the term chosen you can potentially lock in a rate between 4% and 5% currently. And because of the way CD rates are structured, they’ll remain locked and the same until the CD has matured – regardless of any rate cuts that are issued during that time. That said, savers will lose access to their funds for the full CD term and may have to pay a significant early withdrawal penalty to regain access. And these rates will start to cool as rate cuts are issued and possibly even before then. So the window of opportunity to earn a competitive CD rate is closing by the day.

See how high of a CD rate you can lock in online today.

High-yield savings account

High-yield savings accounts may not come with as high as rates as CDs do, but they’re close, and savers won’t need to give up access to their money to earn that rate. That’s because high-yield savings accounts operate the same way traditional savings accounts do, just with a rate many times higher than the average 0.46% those latter accounts have now. Still, rates on high-yield savings accounts are variable and subject to change as the rate climate does. So you’ll need to be aggressive to start earning a high rate (and consider an online bank to secure as high a rate as possible).

Get started with a high-yield savings account online here.

Money market account

Money market accounts operate as a type of hybrid between savings accounts and checking accounts. You may be able to secure a higher rate with one of these accounts than a traditional savings or checking account, but to get it, you may need to meet a minimum deposit amount. Depending on the amount of your deposit — and the amount of money you maintain in the account — you may be able to secure a higher interest rate than you would with a lower amount. But rates on these accounts aren’t immune from the larger economic climate, so start shopping for money market accounts now if you feel that this is the best option for your money.

The bottom line

With inflation many times lower than it was in 2022 — and with the first cut to the federal funds rate since 2020 set to occur later this month — savers should be prepared to make some strategic moves right away. Whether that means opening a CD, a high-yield savings or a money market account will depend on your unique financial situation and long-term goals. Just don’t sit idle. These rates won’t be around for much longer, so take advantage of the opportunity while you still can.