4 reasons to open a high-yield savings account while interest rates are down

• High-yield savings accounts are still the best place to store money you need in the short term.
• Despite interest rate cuts over the last few months, a high-yield savings account will still help you earn 20 times or more on your money without risking it in the market and help you save for specific goals.
• It's always a good time to build a habit of saving, and when interest rates inevitably go back up, you'll earn even more.
• As long as you choose an account with no fees, low minimum balance requirements, and an APY that's higher than a traditional savings or checking account, there are no downsides.
• Read more personal finance coverage.

High-yield savings doesn't go out of style.

Despite the Federal Reserve's recent interest rate cuts, many high-yield savings accounts are still a good deal.There's no better place to store money you need in the short term where your money is safe, accessible, and has a shot at beating inflation.

1. You still earn 20 times or more on your money

It might feel a bit disheartening when the earning potential on your savings drops, but when the alternatives for your money are a traditional savings or checking account earning less than 1% interest - or worse, not saving at all - a high-yield savings account is your best option.

When it comes to high-yield savings accounts still offering over 2%, we think two robo-advisers have an edge: Wealthfront's Cash Account and Betterment's Everyday Savings. They allow unlimited transfers, require low minimum deposits, and levy no monthly maintenance fees, plus they can help you segue into robo-investing. Your money will grow while you're not even looking.

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2. You have specific goals in mind

High-yield savings accounts are especially useful when you have specific savings goals, whether for a down payment on a house, emergency fund, or dream vacation.

It's safer to put money you're planning to use in the next year to three years in a savings account than in investments, particularly when the economy is showing signs of slowing.

3. When interest rates go back up, you'll see more cash

Interest rates can't stay low forever. If you start saving now, your balance will likely be higher when interest rates go up and you'll see a greater return on your money than if you started from scratch.

4. You build the habit of saving

How much and how often you save shouldn't depend on interest rates. In fact, an account's APY should just be a bonus. To build a habit of saving you have to create momentum. And if you can make it automatic, the easier it becomes. 

The bottom line: If you're holding out for the perfect time to start saving, it will never come. You have nothing to lose by starting now.

• More savings and retirement coverage
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• How to save more money
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• When to save money in high-yield savings

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