'Act quick' to lock in 4% interest on your cash before the Fed may lower rates, money expert says: 'That door is starting to close'

On July 30 the Federal Reserve chose to keep short-term interest rates steady.

That’s bad news for borrowers, who will have to wait at least a little longer for costs on everything from credit cards to car loans to come down — market watchers now expect the Fed to cut rates in September.

But what if you’re looking to save money rather than borrow it? The Fed’s rate also impacts how much interest you earn on cash and short-term bonds. If you’re looking to stash away cash, you’d be smart to act before the Fed moves rates down, says Greg McBride, chief financial analyst at Bankrate.

“If you want an interest rate that starts with a four, you’re going to have to act quick,” he says. “Because that door is starting to close.”

If you’re stashing away cash for a short- to intermediate-term goal — say, five years or less — the first thing to ask yourself is when you are going to need the money.