The Federal Reserve has cut interest rates for the first time in four years, a move that will have ripple effects across the economy. For investors and savers, this shift presents both challenges and opportunities—especially when it comes to your idle cash and savings.

What Happens to High-Yield Savings Accounts Now?

Over the past few years, higher interest rates have made high-yield savings accounts more attractive, with many offering competitive returns. However, with the recent rate cut, savers may start to see those rates drop as banks adjust to the Fed’s decision. This means that the competitive yields you’ve been enjoying on your savings might not last much longer.If your cash is parked in a high-yield savings account, now is a good time to consider whether it’s earning as much as possible. As the rates offered by banks start to decline, it might be worth exploring alternatives that provide better value for your idle cash.

Other Areas Affected by the Rate Cut

• Student Loans: Federal student loans won’t be affected, as most have fixed rates. However, if you have private student loans, this rate cut could lower your interest. Contact your lender to see if there’s an opportunity to refinance at a lower rate.
• Personal Loans: Rates on personal loans have climbed in recent years, but with the Fed cutting rates, borrowing costs may start to decline. If you’re in the market for a loan, monitor these changes closely.
• Credit Cards: Lower interest rates mean paying down credit card debt could become less costly. Take this opportunity to focus on paying off high-interest balances, or look for lower-interest or zero-interest balance transfer offers.
• Mortgages: Mortgage rates, especially on 30-year fixed-rate loans, have been volatile. While rates have dropped to around 6%, it’s a good idea to keep monitoring them for better refinancing opportunities before taking on new debt.

Introducing the TradeUP Cash+ Program: A Smarter Way to Earn on Idle Cash

As traditional savings rates start to decline, TradeUP offers a way for you to continue earning competitive yields on your idle cash. With the TradeUP Cash+ Program, you can keep your cash working for you—even as the Fed lowers rates. Here’s why the Cash+ Program stands out:

• High Yields: Unlike typical savings accounts, the Cash+ Program provides competitive yields on your uninvested cash, helping you maintain returns even in a falling-rate environment.
• Convenience: There’s no need to open a separate account. Once you sign up, your idle cash within your TradeUP portfolio will automatically benefit from the Cash+ Program.
• Liquidity: Enjoy easy access to your funds without sacrificing the growth potential of your uninvested cash.
• Security: Your funds are protected and secure while earning high rates, giving you peace of mind in uncertain times.

Leverage TradeUP’s Securities Lending Program

In addition to the Cash+ Program, TradeUP offers another way to enhance your portfolio’s value through our Securities Lending Program. By lending out shares you already hold, you can generate additional income on assets in your account—creating another passive income stream that complements the Cash+ program.

• Revenue Generation: Earn passive income from your existing positions. By participating in TradeUP’s Securities Lending Program, you can earn additional income from shares you already own.
• Easy and Worry-free: Stocks are automatically lent out when there’s demand. This means you don’t have to manage the process; we take care of the details for you.
• No Impact on Trading: You can sell your stocks at any time.

Why This Matters Now

As the Fed continues to adjust rates, the best strategy is to stay proactive with your assets. While traditional savings account rates may drop, TradeUP’s Cash+ Program and Securities Lending Program ensure that your money and investments continue to work for you without extra effort. Together, these programs provide simple, effective ways to ensure your idle cash and securities generate income—even as the economic landscape changes.

Take Action with TradeUP

At TradeUP, we believe your idle cash and securities shouldn’t be left behind as interest rates shift. Explore our Cash+ Program and Securities Lending Program to keep earning competitive yields and make the most of your assets in today’s market. Whether you’re saving, investing, or simply managing your cash flow, we’re here to help you stay ahead of the curve.

*TradeUP Securities utilizes commercially recognized rates as benchmark when determining the annualized idle cash interest rate. The rate may change from time to time at TradeUP Securities’ full discretion without prior notification to clients. For full details, please refer to the Account Agreement.Please note that (SIPC) may not protect you with respect to loaned securities, and you may lose voting rights with respect to loaned securities. For more information, refer to TradeUP Agreement. The information in this material is for informational purposes only and is not intended to provide professional, investment, or any other type of advice or recommendation. It does not create a fiduciary relationship. TradeUP does not make any representation or warranty, express or implied, regarding the accuracy, reliability, completeness, appropriateness, or sufficiency of any information included in this material. Certain information may have been provided by third-party sources, and while believed to be reliable, it has not been independently verified by TradeUP. Any investment decision should not be made solely in reliance on this material, as the information is subject to change without notice. Trading in the extended trading hours market carries greater risk compared to regular market hours. Please carefully consider all potential benefits and risks associated with securities. Securities and derivatives transactions involve the risk of loss, including loss of principal. Past performance is no guarantee of future results. Please read through our Terms and Conditions before investing. Visit TradeUP.com for more information.© 2024 TradeUP Securities, Inc.