When the Federal Reserve cuts short-term interest rates, as it did yesterday, you feel the pinch in your savings account. My ING Direct account, for example, has dropped from 4.50% when I opened it to 3.65% today. It may drop again.

Brian from The Job Bored dropped a line with a money hack for those who like to chase the highest interest rates. “Why not buy protection?”, he wonders. Here’s how:

Since ING makes it free and easy to open a certificate of deposit [CD], every time I see another interest rate drop coming, I just throw more money into a 6-12 month CD, which locks in the higher rate.

I’ve been doing this since before Thanksgiving, and actually just did it again yesterday. I was watching CNBC and they were all saying a rate cut was certain. I now have about 40% of my savings in CDs, earning an average of 4.90%.

This may not seem like much, but it’s a way to assure higher rates for a bit longer. Plus, ING doesn’t drop their rates instantaneously. If you buy the CD a little ahead of time, you can beat the decrease.

I still haven’t opened a certificate of deposit — I’ve never had spare money to do so. But as soon as I’ve saved all of my $10,000 emergency fund, I’ll begin to look at them more closely. I’ll also be certain remember Brian’s trick for the future. It’s yet another way to squeeze more from your hard-earned dollars!