Most of my money is in a high-yield savings account. I asked a financial planner what to do with it when interest rates drop.

Most of my money is in a high-yield savings account right now. I like my interest rates, but I asked a financial planner what to do if my rate drops.

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• I asked a financial planner whether I should take money out of savings if interest rates drop.
• He told me I don't need to rush to pull money out, but it's worth looking for higher earnings.
• ETFs and mutual funds come with good long-term returns, and CDs are also a good choice.

Recently, I sat down and did a mid-year audit of my finances. I noticed that more than 65% of my money was sitting still in high-yield savings accounts. Financial professionals have told me in the past that it's not the best strategy to keep my money in a savings account.

Instead, they've shared that it's best to keep only three to six months' worth of expenses there. I haven't felt ready to follow their advice, especially since my high-yield savings account at Ally Bank has been offering 4% to 5% APY on the money in the account.

The Federal Open Market Committee is set to meet at the end of July to assess the current economic conditions. It could decide to cut interest rates, which would affect savings accounts, loans, and mortgages.

If that happens, it might make sense for me to move money out of my high-yield savings account. I met with certified financial planner Jake Skelhorn, who shared three things I can do with that cash if interest rates drop.

1. You don't have to rush to take the money out

I told Skelhorn that I feel a sense of comfort having a good amount of cash in a high-yield savings account. As a solopreneur whose income varies, I wanted to keep more than the traditional three to six months' worth of expenses in that account.

He said that even if interest rates start to drop, I don't have to rush to take my money out of that account.

"If the primary goal for the money in your high-yield savings account is easy access in case of emergencies or short-term expenses, like vacations or down payments, it's okay to keep the money there," he said. "The high interest is a risk-free bonus. If it drops, that shouldn't impact your overall goal with those funds."

2. Reassess your liquidity needs

However, Skelhorn said that if I do want to move some of the money out so that my high-yield savings account balance isn't well above what I need for an emergency fund, it might be time to invest the excess cash.

"While it's nice to get a guaranteed 5% or so from that high-yield savings account, investing in the stock market via ETFs or mutual funds is typically going to provide you a better long-term rate of return for goals like retirement," he said. "While more volatile year-to-year, stock market returns have averaged approximately 10%, which is about double what you're getting in a high-yield savings account today."

3. Consider similar low-risk alternatives

I told Skelhorn that I would be open to investing some of the cash in my high-yield savings account, but I also wanted to put another chunk of it somewhere that came with low or moderate risk.

He said that if any or all of the money in my high-yield savings account is going to be used for specific expenses at a predetermined date in the future, it's a good idea to look into CDs and Treasury bonds to lock in a high-interest rate at a low risk.

"For example, if you know you're not going to be in the market to purchase a home for at least a year, you can purchase a 1-year CD and know that you'll get that interest rate regardless," he said.

After speaking with Skelhorn, I decided to follow a strategy that I was comfortable with. I'd keep about six to nine months of expenses in my high-yield savings account no matter what the interest rate dropped to, invest a portion of the leftover money, and put the rest in a ladder of CDs for now.