If you have any money in a traditional savings account right now, you may want to reconsider your approach. With an average interest rate of just 0.38% right now, according to the , rates here have actually declined in recent months. That makes this account type an increasingly poor place to keep your money now, particularly when rates on alternatives like high-yield savings and certificates of deposit (CD) accounts are exponentially higher. 

High-yield savings accounts, in particular, have been a worthwhile alternative for many years now, thanks to the elevated interest rate climate. But the economy is slowly but surely changing again, thanks to a lower inflation rate and the prospect of another round of interest rate cuts looming. In today's economy, then, there are some timely pros and cons to high-yield savings accounts that savers should know before getting started. Below, we'll detail four important ones to know this July.

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High-yield savings account pros and cons to know this July

To improve your chances of success with a high-yield savings account now, first take the time to familiarize yourself with these four timely (but important) pros and cons:

Pro: Interest rates are still high

You can easily find a high-yield savings account with a rate of 4.30% right now by briefly shopping around online. That's more than $4 earned for every $100 deposited into the account, done with very little effort or maintenance on behalf of the saver. And while today's high-yield savings rates aren't hovering around the 5% they were a few years ago, they're still competitive. These accounts offer savers an easy way to earn interest on their money, which is always important but particularly so now, ahead of predicted rate cuts to come.

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Con: Interest rates may fall sooner than expected

There is a wide expectation that the Federal Reserve will maintain its federal funds rate at its July meeting. But there's also a wide expectation that it will cut that rate when the central bank meets again in September (the tool projects a cut then around a 65% likelihood). But high-yield savings account rates won't fall neatly in line with any formal Fed action or lack thereof. 

Banks and lending institutions don't need to wait for the Fed to cut rates to take preemptive action by reducing the rates they pay to savers. And while CD account holders will be immune from this until their account matures, high-yield savings account holders won't be. In other words, today's rates may be high, but they could fall sooner than expected, perhaps as soon as August if Fed officials make public comments encouraging a rate cut later this year. 

Pro: You'll maintain the flexibility you need right now

Still, changes to a high-rate savings account may be manageable if it means maintaining access to your funds. With a high-yield savings account, this isn't a concern the way it would be with a fixed-rate CD (which charges savers an early withdrawal penalty to regain access to their funds). And with inflation rising in May, interest rate cuts possible (but not guaranteed) and concerns over changing economic policies in the country, flexibility may be exactly what you need right now.

Con: You may need to use an online bank instead of your current one

If you enjoy the comfort and familiarity of using your local banking branch, a high-yield savings account may not be for you. The main attraction of this account, after all, is the high rates they come with. And those are usually highest with online banking institutions. 

These banks don't have the high overhead maintenance costs that banks with physical locations in your neighborhood do, so they're often able to pass on those savings to customers via higher interest rates. But you'll need to be comfortable using an online bank to secure those rates, and that may mean taking a few more steps to make the withdrawals and deposits you were accustomed to making with a quick ride (or walk) to your local bank.

The bottom line

The benefits of a high-yield savings account may have waned a bit compared to the recent past, but for many savers, they still represent a smart and accessible way to grow their money. By carefully evaluating these pros and cons this July, then, these savers can better determine if a high-yield savings account makes sense for their financial situation or if they'd be better off exploring CD and money market account alternatives instead. Leaving the money in a traditional savings account, however, likely makes the least sense right now.