The Fed has finally cut rates after holding for 12 months at a 23-year high. Here’s what it means for your money.

With a focus on reducing out-of-control inflation, the Federal Reserve hiked its benchmark interest rate 11 times between March 2022 and July 2023. It held steady at a historic high for more than a year, and experts called for cuts throughout the summer of 2024 after an uptick in the unemployment rate. With inflation finally dipping below 3% in July and now headed toward the 2% target, the Fed announced at its September 18 meeting that it would cut interest rates by 0.50%, with more cuts expected later this year.

Insight from Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance

"The Fed front-loaded this rate cutting cycle with a jumbo 50 bps rate cut and signaled in their statement that they are focused squarely on the labor market, saying they are ‘strongly committed to supporting maximum employment.’

"Although they pay lip service to the other part of their dual mandate (i.e. inflation), clearly they have taken their eye off that ball and although inflation is much lower now than the peak we saw in 2022, igniting a stock market rally and goosing a growing economy with lower rates risks letting inflation come roaring back before this bull market ends.

"We believe that the market will undergo some volatility as we get closer to the election, however, lowering interest rates now – and telegraphing another 50 bps in cuts by the end of this year and a total of 150 bps more by the end of next year – should allow the market to hit all-time highs again by the end of this year, and more gains for next year."

Here’s how the federal rates have changed since 2022:

View this interactive chart on Fortune.com

5 money moves you should make before further rate drops

The Fed’s rate influences the rates that banks set on consumer products, such as high-yield savings accounts, certificates of deposit (CDs), and credit cards.

“A higher federal funds rate means banks’ borrowing costs are greater,” says Dan Tolomay, chief investment officer (CIO) of Trust Company of the South. “This gets passed on to consumers in the form of higher interest rates on things like auto loans and mortgages.”

Conversely, a lower Fed rate means lowering borrowing costs for banks and, therefore, lower borrowing costs and higher savings rates for consumers.

If you’re wondering how you should navigate your finances in the face of this recent reversal, consider these four strategies.

1. Pay down your high-interest debt 

High-interest debt, such as credit card debt, can prevent you from reaching your financial goals. Even with a few small cuts, interest rates remain relatively high, and the cost of holding credit card debt continues to be expensive. In May, the average annual percentage rate (APR) was 22.76% for all credit card accounts with assessed interest.

Make a plan to reduce or eliminate your debt. With the avalanche method, borrowers attack high-interest debt first to save money on interest. If, however, you prefer small wins to keep the momentum going until you’ve paid off all your debt, try the snowball method. The best strategy for you will depend on what you can stick to in the long term.

2. Put some money away in CDs

CDs utilize fixed APYs, meaning your rates won’t change once you get them set up. Taking advantage of the long run of high interest rates, some five-year CDs have APYs over 4%, and several one-year CDs currently have APYs well above 5%. Those rates will likely come down as the Fed rate continues to drop.

It’s worth shopping around for a CD rate that takes advantage of the current interest rates before they drop further and potentially even setting up a CD ladder to make the best of the rates at hand.

3. Shop for a new savings account 

Higher interest rates aren’t always bad news, especially for savers. The APY on your savings account will likely go up and down alongside the federal funds rate. If you’re shopping for a new account to park your savings in, a higher APY can help your balance grow even faster.

The most recent rates from the Federal Deposit Insurance Corp. (FDIC) put the national savings APY average at 0.46%, although banks set their own rates, and you can likely secure a much higher APY by shopping around and utilizing a high-yield savings account.

4. Avoid making any sudden investing moves 

Any time rates change or the market anticipates these changes, you could see positive and negative stock market swings. Higher interest rates tend to affect earnings negatively and lower stock prices while lower rates can encourage business growth and raise prices. You might be tempted to hop on an investing trend or panic sell as a result.

If you’re investing for a goal that is still years down the line, you may want to ride out any short-term market changes. Timing the market is a risky move, and sudden changes could work against you.

5. Work on boosting your credit score 

Lenders rely heavily on your credit score and the information in your credit report to determine whether or not to give you financing for big purchases like a home or car. It’s important to scope out different rates and improve your credit score, as doing so could mean more favorable terms.

View this interactive chart on Fortune.com

“If consumers are waiting for lower interest rates to refinance, when interest rates finally do start to come down the best way that they're going to be able to take advantage of those is if they have good credit and good credit scores,” says Raneri.

Some of the key ways to improve your score include:

• Make timely payments: Pay your bills on time and in full.

• Keep your credit utilization ratio under 30%: Your credit utilization ratio is the ratio of credit you’re using to the total amount you’ve been extended.

• Limit the number of new credit applications: Too many new applications in a short amount of time can hurt your score.

• Review your credit report for errors: Inaccurate information can drag down your score significantly. Catching an error early on and disputing it with the credit bureaus immediately can ensure that it’s dealt with and removed from your report.

The takeaway 

As the federal funds rate continues to decline throughout this year, rates on everything from credit card APRs to mortgages will follow. While this is good news for those carrying credit card debt or planning to buy a home, it could mean bad news for savers stashing cash in bank accounts.

Regardless of what the Fed does, focus on what you can control when it comes to your finances—shop around for the best rates on savings accounts, improve your credit score, and stick with a long-term investment plan.

This story was originally featured on Fortune.com