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.