David Bach The Automatic Millionaire

Two weeks ago, Federal Reserve chairman Ben Bernanke moved to lower short-term interest rates by 50 basis points. That was on top of the historic move 10 days earlier when, in an unscheduled emergency meeting, he lowered the federal funds rate 75 basis points.

The good news is that these federal rate cuts help the stock market and borrowers in the short term. The bad news is the decreased interest rates we're now getting on our savings accounts.

Downward Spiral

In the last two years, money market accounts and online savings accounts have had nice returns, often over 5 percent. Until last week, my personal savings account was earning 5 percent and my business savings account was earning 4.75 percent (it was over 5 percent six months ago).

After Bernanke's move, my personal savings rate dropped to 3 percent and my business savings dropped to 2.75 percent. That's huge.

How to make up the loss? Here's what I'm doing, and I suggest you do the same:

1. Find out what the rate on your accounts has adjusted down to.

Don't assume that the rates on your checking, savings, and money market accounts hasn't changed. My banker called me proactively (thank you, Bryan), but chances are your banker didn't. So call your bank or brokerage firm today and find out what your rate is, and ask if it's going to go lower. (Chances are that it is.)

In addition, check and see if the bank is offering a teaser rate for new customers or new accounts, and see if you can open one to get this rate.

2. Go online and shop for a rate.

If you're banking with a local bank and they're not willing to compete for your money by offering you a decent rate on your savings, go to an online bank. Start by searching at iMoneyNet or Bankrate.com. Bankrate breaks down the rates offered by various institutions here.

Also check out EmigrantDirect. They've consistently offered some of the highest interest rates online in the last two years. Their primary competitor, ING DIRECT, is worth looking into, too. Also remember that many of the national banks are now offering online savings accounts, so check to see if your current bank is offering an online alternative and, if so, how much more they're paying in interest (it may be worth switching).

3. Look at CDs as an option to money markets.

Go to Bankaholic.com to compare certificate of deposit (CD) rates. I love this site because it also shows you special offers and features customer reviews. There are currently some special-promotion CDs that are close to 5 percent.

These are promotional offers, and many expire in days, but I'm sure there are more to come. The secret is to stay on top of the special offers and keep track of their terms -- many will require a minimum investment and others will only allow a maximum investment, so read the fine print.

4. Look at short-term corporate bonds and municipal bonds.

If you have a financial advisor, ask what he or she can offer you in terms of short-term corporate or municipal paper. I have an entire portfolio built of short-term paper that's averaging close to 4.8 percent right now. The paper I own is called Municipal Auction Rate Securities, or MARS.

The average duration of these bonds is between 20 and 30 years, but the paper has an interest rate feature that typically resets between 7, 28, 35, or 180 days. Because they reset with such short-term provisions, they typically trade in a manner similar to short-term debt. They're also backed by municipal bond insurance, and most of my bonds are federal-tax exempt. The minimum investment usually required for these types of bonds is $25,000, but you can sometimes find them in increments as little as $5,000.

5. Look at short-term bond funds.

I personally don't invest in these because I hate the risk involved. Short-term bond funds invest short-term bonds, and if rates go higher the bond values drop. On the other hand, if rates go lower -- and they probably will for a while -- the bond values rise.

Typically, the average duration of a bond in a short-term bond fund is a few years or less, so I would consider one only if I didn't need the money for 18 months or so. But again, my personal preference is a guaranteed investment.

Risky Business

People who own their own businesses should find out what their company's checking and savings accounts earn, too. Amazingly, many businesspeople overlook the interest on their business accounts -- I know, because this has been a topic of conversation for me and my business friends over the past two weeks.

Not one of them has shopped their rate yet, and in fact most couldn't even tell me what their business accounts were paying before the rate cut. Even worse, many admitted that they aren't earning money on their business accounts at all.

It's time for them -- and the rest of us -- to get shopping, because the Fed just took away our easy money.