Month: September 2025

Why Verde Clients Are Still in a Strong Position Despite the Drop to 3.75% on High-Yield Savings

If you’ve been Googling “What does the Fed rate cut mean for savings accounts?” or “Will my interest rate go down after the Federal Reserve decision?” you’re not alone.

On the heels of the Federal Reserve’s most recent 0.25% interest rate cut, questions are swirling:

• Are high-yield savings accounts still worth it?
• Will my returns shrink?
• Is now a good time to borrow?

At Verde Capital Management, we’ve already run the numbers and here’s exactly how this latest rate cut affects our clients, their savings, and their ability to make savvy financial moves in 2025.

Verde Flourish Drops to 3.75%, Still Crushing Big Banks

Let’s address the elephant in the portfolio: Yes, the Fed cut rates. And yes, our Verde Flourish savings account has adjusted accordingly:

• New rate: 3.75% APY (previously 4.00%)
• Still competitive: Most traditional banks are offering 0.01%–0.50% (that’s not a typo)

If you’re serious about parking cash wisely, a 3.75% yield is still one of the most strategic cash moves available. And it’s FDIC-insured via our partner platform, so you get both yield and security.

Smart Borrowing Just Got Smarter: 5.00% SBLOC

Here’s the upside of falling rates: borrowing just got cheaper, too.

Our Securities-Backed Line of Credit (SBLOC) now offers:

• 5.00% interest (down from 5.25%)
• No need to liquidate investments
• Flexibility for big expenses without tax consequences

A securities backed loan could help you plan a strategic real estate move, tuition payments, taxes payments, or simply give you liquidity without a paper trail of selling assets.

Curious if it’s right for you? Reach out to a Verde advisor and we’ll run the numbers together.

Verde Strategy in a Post-Rate-Cut World: Steady, Smart, Strategic

Let’s be clear: The Fed’s decision affects rates but it doesn’t change your long-term goals. At Verde, our approach hasn’t wavered:

• Cash earns while it waits (thanks toFlourish)
• Liquidity is available (thanks to the SBLOC strategy)
• Your investments are diversified and tax-aware
• Your plan is built to weather markets, not follow them

Frequently Asked Questions We’re Hearing from Clients

Will savings rates drop more?

It’s possible. The Fed is signaling a cautious path forward. That’s why locking in higher-yield options now is smart.

Should I move my savings from my big bank?

If your bank is paying less than 1% and you’re not planning to spend the cash immediately, then yes. Contact us about Flourish.

Should I borrow now before rates rise again?

Maybe. If you have an opportunity or need coming up, now could be the time to take action while borrowing costs are down.

What Should You Do Next?

If you’re wondering how this rate cut affects your financial plan, contact us for guidance.

Schedule a call with our team to talk through your cash strategy, investment portfolio, or potential borrowing needs. bit.ly/callwithverde

Already a client? Log into your Verde client portal or message your advisor to review your current allocations.

The markets have been on a tear this year. We’ve seen strong gains, record highs, and more optimism than we’ve had in quite some time. But as the calendar flips to September, it’s natural to get a little twitchy. Historically, September is the worst month for stocks1, and with headlines hinting at everything from inflation to interest rate decisions, the question on many investors’ minds is: Should I do something?

 

The short answer? Probably not what you think.

 

Let’s take a look at why seasoned investors don’t fear volatility, but they often plan for it, expect it, and even welcome it.

 

Strong Years Still Have Speed Bumps

Even in up years, volatility is normal and so are temporary setbacks. The market can’t go up in a straight line (even if we wish it would), and September tends to remind us of that.

 

But here’s the twist, years with lots of volatility (10+ big market swings) still saw average returns over 19%. In other words, big moves don’t mean bad years. In fact, they often mean the opposite.

 

September Slumps Can Be Smart Entry Points

No one enjoys seeing red in their portfolio. But history shows that buying during a 10% dip leads to median 12-month returns of 15.9%, and buying from the actual bottom of that dip boosts it to 24.5%.

 

So instead of treating September’s potential shakiness as a reason to retreat, think of it as the market’s version of a seasonal sale. It’s the time of year when fear goes on clearance, and long-term thinkers go shopping.

 

Bearish Sentiment = Bullish Potential

Investor sentiment has been incredibly bearish during some of the best buying opportunities in recent history. In the top 10 most bearish sentiment periods, the average return over the next year was 25.1%.

 

Translation? When everyone else is scared, the disciplined investor often reaps the rewards.

 

The Real Risk Is Missing Out

If you think you can avoid September’s swoons and just jump back in for the good days, think again. Missing just the top 5 trading days over the last 20 years would have cut a portfolio’s returns by more than a third (from $717K to $452K on a $100K investment).

 

It’s not about timing the market. It’s about time in the market.

 

What Should You Do This Month?

 

• Don’t panic. The market might wobble, it usually does this time of year. 
• Stay invested. History shows that staying the course beats trying to time the dips. 
• Review your strategy. If volatility makes you lose sleep, it’s a sign to revisit your risk tolerance and diversification. 
• Think long-term. This year has rewarded patient investors. Don’t let one month derail your momentum. 

 

It’s tempting to react when things get bumpy, especially after a great run. But history is clear: volatility is not the enemy. It’s often the doorway to long-term wealth.

 

If you need a partner to help you navigate the emotional roller coaster and keep your investments aligned with your goals, reach out to a Verde advisor. bit.ly/callwithverde

 

Sources

1https://www.morningstar.com/news/marketwatch/2025090155/september-is-historically-the-worst-month-of-the-year-for-stocks-why-this-time-could-be-different

https://www.blackrock.com/us/financial-professionals/literature/presentation/student-of-the-market-special-edition-market-volatility.pdf