Heart sinking after seeing your savings account rate drop again? Here are 3 things to keep in mind during rate declines.

The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate products and services to help you make smart decisions with your money.

• The Federal Reserve lowered its rates in its last two meetings, resulting in lower savings rates.
• If you're keeping a good amount of money in a savings account, these rate drops might be concerning.
• Here are some ways you can keep falling rates in perspective and help settle your worries.

Interest rates for savings accounts have been dropping recently. This is partly because the Federal Reserve cut its rates for the first time in several years at its September meeting, then cut its rates again in November. It's now much harder to find 5% APY high-yield savings accounts than it was at the beginning of the year. Most high-yield savings accounts currently pay around 4% APY, and savings rates are likely to drop further in the coming months.

If you keep most of your money in a high-yield savings account, seeing your savings account rate drop might cause concern. But earning a 4% interest rate is still pretty good, and there are ways you can protect your money against further rate drops. Here are three things to keep in mind as savings account rates decline so you're looking at the bigger picture and keeping declining rates in perspective with larger rate trends.

1. Historically, savings rates are still strong

While 4% interest sounds less impressive to us now after a year of 5% interest savings accounts, savings rates are still high compared to the rates of the last 10 years.

In early 2022, the Federal Reserve started quickly raising its rates, with the federal funds target rate peaking at 5.25% to 5.5% during the second half of 2023 and the first half of 2024. Between 2014 and 2022, the highest the federal funds rate reached was 2.25% to 2.5%, over two percentage points under what the federal funds rate is now.

"I remember for a long time, in the 2010's through to, like, COVID, they were like one to two percent, if that. And so, I mean, even seeing a three, and four and five, that's still pretty exciting to me," says Roger Ma, CFP® professional, financial planner at lifelaidout and author of Work Your Money, Not Your Life, about high-yield savings accounts. "I still think they're relatively healthy, from a historical perspective," Ma adds.

2. You can reexamine savings goals and make adjustments where necessary

Still, if you're concerned about losing out with lower savings account rates, there are things you can do to keep building your savings goals. One of the most important things you can do is consider whether your savings goal belongs in a high-yield savings account at all.

Something like an emergency fund or a short-term goal, like saving up for a yearly vacation, might still fit best with a high-yield savings account. But other savings goals might do better in another type of account.

"As you look at the collective of your various goals, if there are things that are longer term in nature, like early retirement or financial independence or something like that, maybe there's money that's currently in your savings account that shouldn't be there in the first place," says Ma. "That's something that you can put into assets that might have a higher expected yield in the long term."

Options for higher-yield accounts include retirement plans and brokerage accounts. Retirement plans can either be pre-tax, meaning the money you put in your account hasn't had income tax taken out of it, or post-tax, meaning the money in the account has already been taxed. You might have a 401(k) account through your employer, and if you're self-employed, you can open a solo 401(k). You can also open an IRA, which comes in traditional (pre-tax) or Roth (post-tax) forms. There are limits to how much money you can put into a retirement plan each year since they come with tax benefits you wouldn't get otherwise.

Brokerage accounts are accounts you can use to invest money. "It's essentially an account that allows you to buy stocks, bonds, mutual funds, and ETFs," says Ma. Brokerage accounts are fully taxable, but they also aren't limited like retirement plans are. They also aren't FDIC-insured, and it's possible to lose money you put in a retirement account.

3. A few savings accounts still offer 5% APY or more

Right now, you still have options if you want a savings account that offers 5% interest.

The highest rate available from a nationwide bank or credit union can be found at Pibank Savings, which offers 5.50% APY. The Newtek Bank Personal High Yield Savings Account also offers a high interest rate of 5.25% APY, and several online bank accounts, including Openbank High Yield Savings, LendingClub LevelUp Savings Account, and Forbright Growth Savings, offer at least 5% APY.

But these rates probably won't last for much longer, and spending time switching your money from account to account might take up time and energy better spent on other financial goals.

"I would suggest spending that energy kind of getting to know your financial situation better in terms of reviewing your annual expenses or creating your goals, and then trying to align that to where you put your money and how much you put into a savings account," says Ma.