You sold a second home, earned a sizable year-end bonus or received an inheritance. The check arrives, and it's equal parts exciting and overwhelming.

You think of all the ways you plan to use that check, but first you have to deposit it. And this is where you might run into challenges.

To make what could be a frustrating situation less stressful, I am going to show you some obstacles you could encounter and ways to work around them when depositing a substantial check.

Depositing a large check isn't easy

Banks want to protect themselves from scammers. So they impose mobile and other deposit restrictions.

That's why each bank has its own policy for larger check deposits. In general, if your check is over $10,000, a mobile deposit might not work. If you don't have a branch nearby, what do you do?

Thankfully, it's not hopeless. First, contact your bank. Explain your situation and see what options are available. They might suggest overnighting the check. Use certified mail to track your package and ensure it arrives.

Credit union members might have access to partner branches. This means you can visit a participating branch to conduct transactions. However, I recommend calling that partner branch in advance and explaining your situation to ensure they can help.

You could also contact the check issuer and request an electronic payment instead. You might have to pay a stop-payment or wire transfer fee, but this guarantees you receive the money without jumping through any hoops.

And when you receive the money, here's a smart strategy.

Grow your wealth while planning for the future

Receiving a large deposit is exhilarating until you have to determine what to do with it. That's why I recommend opening a savings account or storing it in a short-term certificate of deposit while figuring out next steps.

If you need cash access, a high-yield savings account will be your best bet. Look for online banks since they offer higher APYs with no monthly fees. Newtek Bank is our top choice at the time of this writing, offering a 4.20% APY.

The other thing to keep in mind is that high-yield savings accounts have variable interest rates. If the Fed issues another rate hike, you could receive an even higher APY.

Alternatively, a certificate of deposit is perfect for storing money away for a few months and not touching it. Some CDs offer higher APYs than high-yield savings accounts, giving you a better way to grow your deposit.

Use this Bankrate tool to find the best option for your goals:

Remember, if you need to break a CD term, you'll incur early termination fees. So, if you're on the fence about cash flow, use a high-yield savings account for a few months until you have a plan in place.

Ultimately, depositing a large check can be challenging, but it's doable. Contact your bank to learn more about their deposit policies. Once your deposit goes through, buy yourself time with a short-term CD or high-yield savings account, where your money grows even more as you plan for next steps.

Speaking of planning, if you come into a lot of cash and need help with next steps, consider a reputable financial adviser or personal banker. They can work with you to establish goals that help you build wealth, pay off debt and plan for any tax implications.

If you don't have an adviser, use this Bankrate tool to find a reputable one:

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You've come into some cash, or you're looking to allocate some money away from the rollercoaster of market volatility as you approach retirement. So, where do you place it?

If you're looking to store significant cash (think $100,000), a smart solution can be a jumbo CD. Jumbo CDs come in a variety of terms to match your savings goals. And with competitive APYs, you can earn thousands of dollars effortlessly.

I'll show you how much you can earn with the best jumbo CD rates and whether now is the right time to lock one in.

How much can I earn with an 18-month jumbo CD?

I review CD rates regularly and have found that jumbo CDs consistently offer some of the highest APYs. CreditOne Bank offers an 18-month CD with a 4.50% APY and no monthly account fees.

If you deposit the minimum $100,000 into this CD, you'll earn $6,825.38 effortlessly over just a year and a half.

Of course, this term might not suit your timeline. Jumbo CDs carry early withdrawal penalties. For larger cash balances, breaking a CD early can mean losing thousands of dollars in interest.

If you want to earn a higher rate but don't want to tie up your cash for that long, use this Bankrate tool to find a term that matches your needs:

Another factor to consider is that CDs have fixed interest rates. This means that even if the Federal Reserve hikes rates during your term, your APY will remain unchanged.

Is the timing right for a longer-term CD?

The Fed is unlikely to make a move at its October meeting. The same doesn't apply for the December meeting, especially if sticky inflation remains.

This means if the Fed hikes rates again, you could miss out on a higher APY. With that significant a deposit, you'll lose out on hundreds of extra dollars.

An alternative is to look for a shorter-term option (ideally six months) for now. This positions you to earn a high APY now, and when the CD matures, you could earn an even higher APY.

However, if you don't want to chase rates and want a guaranteed return on your cash, the 18-month jumbo CD from CreditOne Bank checks all the boxes.

Don't forget to plan for this

CD earnings are taxed as ordinary income, so your marginal tax rate applies to your yield. A financial adviser or accountant can help you plan accordingly.

As Dat Ngo, CPA at Vetted Prop Firms, notes: "One thing savers often miss when comparing jumbo CDs to high-yield savings accounts is the tax timing. With a CD, you typically owe income tax on interest in the year it's earned — even if the term hasn't matured yet — so a multi-year CD on $100k can create a recurring tax bill you weren't budgeting for."

What are the best reasons to use a jumbo CD?

Some of the best options include:

• You have a shorter-term savings goal: Whether you're planning a dream vacation, want to pay in cash for home remodels or have your eyes on another expense, 18 months can be the sweet spot to make some money and achieve these goals.
• You're retiring soon or are retired: You want to protect some of your hard-earned money from risk while earning a guaranteed return.
• FDIC Insurance: FDIC-insured banks are generally covered up to $250,000 per depositor, per insured bank, for each account ownership category. That protection can make CDs an attractive place to hold a large cash balance while earning a guaranteed return.

No matter your financial strategy, jumbo CDs offer a compelling blend of security and competitive yields. Locking in a top-tier APY now puts your money to work safely —maximizing your returns without the risk.

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Using an independent ATM can cost you a few dollars in fees. But if you paid a surcharge to withdraw cash from a nonbank ATM, you could be eligible for money from a $167.5 million Visa and Mastercard settlement.

The class-action lawsuit alleged that Visa and Mastercard violated antitrust laws by preventing independent ATM operators from charging lower fees when transactions could be processed over less expensive competing networks. The plaintiffs argued that those rules caused consumers to pay higher ATM fees than they otherwise would have. Visa and Mastercard deny wrongdoing but agreed to the settlement.

Consumers who paid an unreimbursed surcharge at an independent ATM between October 24, 2007, and August 14, 2026, may qualify for a payment. Claims are now open, and eligible consumers have until February 10, 2027, to submit a claim.

Who qualifies for the Visa and Mastercard ATM settlement?

According to the settlement website, customers may qualify if they paid a surcharge to withdraw cash from a deposit account at an independent ATM between October 24, 2007, and August 14, 2026. The ATM must have been located in the U.S. or its territories, and the customer's bank must not have fully reimbursed the fee.

Independent ATMs are machines that aren't owned by a bank or other financial institution. You might find them at convenience stores, gas stations, grocery stores, bars and other businesses. To qualify, customers must have made the withdrawal using an ATM or PIN-debit card.

Credit card cash advances and prepaid-card transactions aren't included in the settlement.

How much could you receive?

The settlement fund totals $167.5 million, but individual payment amounts will vary. How much you receive will depend on factors including the number of valid claims and qualifying ATM transactions.

The fund will also be used to pay attorneys' fees and expenses, settlement administration costs, taxes and service awards to class representatives. The remaining money will be distributed among eligible claimants.

How to file a claim

You can submit a claim online through the official settlement website. The form asks for basic contact information, including your mailing address, phone number and email address. You'll also be asked to estimate the number of qualifying ATM transactions you made during the eligibility period.

You don't need to provide documentation when you submit your claim. However, the claims administrator may later ask for bank statements or other documents to support it. Claims are submitted under penalty of perjury, so your information must be accurate to the best of your knowledge.

Claims must be submitted by February 10, 2027.

Why Visa and Mastercard agreed to the settlement

Visa and Mastercard faced allegations that their network rules violated antitrust laws by preventing independent ATM operators from charging lower fees when transactions could be processed through less expensive competing networks.

Plaintiffs argued that those restrictions caused consumers to pay higher ATM fees than they otherwise would have.

Visa and Mastercard deny wrongdoing but agreed to pay $167.5 million to settle the claims.

Key dates to know

As the class-action settlement moves forward, keep these key dates in mind:

• December 11, 2026: This is the deadline to object to or exclude yourself from the settlement. Objections must be postmarked by this date. If you want to retain your right to sue Visa or Mastercard separately over the claims covered by this case, your request to be excluded must be received by December 11. If you exclude yourself, you won't be eligible for a settlement payment.
• February 10, 2027: Claims must be submitted by this date to be eligible for a payment. If you're mailing your claim, make sure it arrives by the deadline.
• February 17, 2027: The final approval hearing is scheduled for 4 p.m. ET. The court will consider whether to approve the settlement. If the settlement is approved and appeals are filed, payments can't be distributed until those appeals are resolved.

When will ATM settlement payments be sent?

According to the official settlement website, the claims administrator expects to send payments within six months of final approval if no appeals are filed. If there are appeals, payments will be delayed until they are resolved.

If you think you qualify for a payment, submit your claim before the February 10, 2027, deadline. After that, keep an eye on the official settlement website for updates on final approval and when payments will be distributed.

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Imagine this: You receive a check with the proceeds of an inheritance. Whether you were expecting it or not, the question now is: What do you do with it?

Here's where you might run into some problems. If the amount is larger than $10,000, most banks won't accept a mobile deposit. A Kiplinger colleague recently experienced this after losing a loved one and encountered unexpected challenges.

The check arrived, but they couldn't deposit it electronically. Another issue? They didn't live close to any of their bank's brick-and-mortar branches. If you find yourself in a similar situation, here's what to do.

Ask your bank for solutions

My colleague reached out to their bank, which suggested overnighting the check. If you go this route, send the check via certified mail, then you can track the package and have proof that the bank received it.

But mailing a large check can be uncomfortable for many, including my colleague. If you don't want to mail your check, contact your bank directly to explain your situation.

Chances are, they'll find ways to work with you. Banks usually set deposit limits based on your average daily balance and account age for both savings and investing accounts such as IRAs. Yet, they'll give you more clout when depositing a larger amount.

Other ways to deposit your beneficiary check

Some banks partner with other institutions. This is more prevalent with credit unions. If you don't have a local physical branch, a partner institution might, allowing you to conduct in-person transactions seamlessly.

Another option is to contact the will's executor. Ask them to cancel the check and wire your funds electronically. This can bypass any deposit limits the bank imposes, giving you quicker access to your funds.

My colleague reached out to their brokerage firm for help. The firm eventually decided to send someone to their house to pick up the check for deposit. This is likely a last resort, as many banks don't have the resources or won't offer that service.

Once you deposit your inheritance check, another question emerges: What do you do with the funds?

Buy yourself some time with this step

Proper planning goes a long way to ensure the gift you receive helps you achieve your goals. I recommend opening a high-yield savings account, a money market account or a short-term CD until you decide if there's anything further or more specific you want to do with the funds.

Look for online banks since they offer higher APYs, lower fees and many accept mobile deposits. On the high-yield savings end, here's a smart recommendation:

Money market accounts are great if you want to grow your cash with the purchasing power of a checking account. Keep in mind that some banks set transaction limits, so this account works best for someone who wants guaranteed returns while making minimal transactions.

Meanwhile, a CD locks in a decent rate of return without market volatility, thanks to its fixed interest rate. I recommend a short-term option of three to six months or a jumbo CD (if the deposit is $50,000 or more) to earn a sizable return while you figure out next steps.

Use this Bankrate tool to find and compare options fast:

When choosing an account, look for FDIC insurance. This protects your deposit up to $250,000 per account holder, giving you peace of mind.

Once you choose a savings account, do this next.

Set goals to create lasting wealth

Your loved one left you a valuable resource. It's up to you to determine what to do with it. If you haven't been in a position in which you've had this much money before, my first tip is to find a reputable financial adviser or personal banker.

When searching for a financial adviser, look for the following qualities:

• Fiduciary designation. This ensures they act in your best interest rather than prioritizing commissions or sales targets.
• Reputation. Read client feedback to gauge trustworthiness. Common complaints across reviews can point to recurring issues you might experience too.
• Personal. Find an adviser who asks open-ended questions about your financial goals and values rather than boxing you into a one-size-fits-all approach.
• Services. Can they cover all your financial needs, such as retirement planning, tax strategies, asset allocation and estate planning?
• Proactivity. Goals evolve. Look for an adviser who commits to meeting regularly, so they can update plans as priorities change.

One of the best things about working with a reputable financial adviser is that they can take some of the planning off your plate. Once they understand your goals and values, they can tailor a plan to pay off debt, save/invest, plan your estate and address any other financial concerns you might have.

If you don't have an adviser yet, you can use this Bankrate tool to find a reputable one quickly:

Ultimately, receiving an inheritance check can be a challenging process at a time when you're experiencing the fog of grief. However, by following these steps, you can find the right deposit solutions, give yourself time to figure things out and develop a plan that helps you build wealth now and well into the future, as the gift was intended.

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Higher prices are here for now. The escalating Iran War will keep energy prices higher, impacting everything from groceries to air travel.

And the Federal Reserve took notice. At its September meeting, it raised the federal funds rate by a quarter of a point.

The rate increase could benefit savers if banks respond by raising rates on savings accounts and CDs. If you're looking to move $25,000 into savings and away from market volatility, I have a few strategies to consider. But first, you'll want to do this.

Finding purpose can simplify decision-making

Every goal starts with one question: Why? This purpose can help you choose the right savings account.

If you have a time-specific goal, such as saving $25,000 for a dream vacation or planning a bigger home renovation, a certificate of deposit could be the smart choice. The best CD rates can earn you more than high-yield savings accounts.

I also like them because you can find a term that matches the timing of your goal, whether that's six months, one year, or even five years down the road.

You can find and compare the best CD terms for your goals using this Bankrate tool:

CDs have fixed interest rates, so once you lock one in, you can't earn more. If the Fed raises rates again in December, you could miss out on higher yields available on newer CDs.

Meanwhile, if you have $25,000 and don't have a time-specific goal, I recommend a short-term CD in the interim (think three to six months). This accomplishes two things: First, it positions you to take advantage of another rate hike if inflation remains elevated and the Fed raises rates again.

Second, if prices continually rise, you'll have quicker access to your cash, allowing you to pivot to other investments with higher earning potential. Then, you wouldn't have to worry about inflation eroding your purchasing power.

Savings accounts that outpace inflation and give you liquidity

I always recommend a high-yield savings account. You'll earn a much higher APY than you would with a traditional brick-and-mortar bank. And many online savings accounts don't come laden with fees, so you'll keep more of your money.

It's a smart option because you earn a return that outpaces inflation for now, and if your goals change, you have liquidity to make the changes whenever you need to.

When searching for the best high-yield savings accounts, here's my recommendation:

One more thing to note: High-yield savings accounts have variable interest rates. This places you in a great position to capitalize on higher returns if the Fed raises rates again.

Ultimately, now is the time for savers to make money moves with inflation remaining sticky and savings rates being higher. If you're looking to maximize your $25k and don't need to touch it, CDs are your best bet. You'll earn the highest returns and won't have to worry about Fed policy.

That said, if you want some flexibility while you figure out your next moves, a high-yield savings account or a short-term CD is a smart alternative. They keep you flexible while the economic conditions hopefully clarify in the coming months.

• Choose a certificate of deposit (CD): If you don't need immediate access to your $25,000 and want the peace of mind of earning a guaranteed return.
• Choose a high-yield savings account (HYSA): If you need liquidity, flexibility for shifting goals or the ability to capitalize on future rate hikes while keeping your cash accessible.

Not sure which option makes the most sense for your $25,000?

A financial adviser can help you weigh your savings goals, timeline and need for access to your money as part of your broader financial plan.

Use the tool below to connect with an adviser who can help you explore your options.

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The Federal Reserve raised the federal funds rate by a quarter point on September 16. Fed Chair Kevin Warsh told reporters that the underlying inflation data he's reviewing shows the overall price trend isn't improving as the Fed wants. That's not really a surprise either if you've been to the gas station or grocery store recently.

When the Fed hikes rates, it affects your finances in several ways. For savers, this can be good news, as you earn higher returns on savings accounts, especially at online banks.

On the flip side, borrowing costs can also rise on loans and credit cards. Understanding how Fed policy affects your finances can help you save more money. Here are a few examples.

Should I get a variable-rate or fixed-rate savings account?

Savings accounts come with different types of rates. Traditional savings accounts at brick-and-mortar banks, as well as high-yield savings and money market accounts, have variable interest rates. This means that if the Fed hikes rates again, you can earn higher returns without doing a thing.

Meanwhile, CDs offer fixed interest rates, so once you lock one in, you won't benefit from another Fed rate hike. For this reason, I don't recommend a longer-term CD right now unless you've met your savings and retirement goals and are looking for less risky options as you approach or are in retirement.

Instead, I recommend either a short-term CD or a high-yield savings account in the interim. Why? Because we could see another rate hike before the end of the year. The escalating conflict in Iran has pushed gas prices higher, and that will trickle down to everything else.

If you're on the fence about where to turn, here are some scenarios and solutions:

You can also use this Bankrate tool to compare the best CD rates:

How higher rates affect your borrowing (and what to do about it)

While savers benefit from higher Fed rates, borrowing rates also increase. Knowing how to minimize these increases can lower your total loan costs. Here are some examples:

High-interest credit card debt

Credit card APRs work in lockstep with Fed rate hikes. If you're paying the minimum balance but struggle to pay down the balance, a credit card offering a 0% introductory rate can be a smart choice. I like them because your payments go entirely to principal, giving you momentum to pay it off.

The Wells Fargo Reflect® Card gives you a 0% introductory APR for the first 21 months on purchases and qualifying balance transfers completed within the first 120 days of opening your account. Almost all credit card issuers charge a balance transfer fee — usually 3% to 5% of the total balance transferred — so keep that in mind when budgeting your options.

HELOCs and lines of credit

Both have variable interest rates that rise with rate hikes. The easiest solution is to pay down the principal as quickly as you can to lower total loan costs. In some cases, you can ask your lender to convert your variable-rate balances into fixed-rate loans.

You can also shop around and refinance. When considering a refinance, research closing costs, potential prepayment penalties and whether the new interest rate significantly lowers your overall monthly payments.

If you decide to shop around, use this Bankrate tool to find the best rates:

What if I want to finance a car or home?

When planning larger purchases, try to pay as much in cash as possible. For auto loans, choose a shorter repayment term to reduce your total loan cost. And receive your financing outside of the dealership, where you stand to earn the best deal.

Buying a home is trickier because, while Fed policy does affect mortgage rates somewhat, the 10-year Treasury Yield is the main driver and it's keeping mortgage rates high. If you plan to buy a home with cash, it doesn't matter. But for the rest of us, using builder buydown programs to lower interest or taking on an assumable mortgage can be a smart move if the opportunity is right.

While a Fed rate hike boosts returns on high-yield savings accounts and CDs, it also raises borrowing costs across credit cards, loans, and mortgages. Navigating these changes effectively requires placing your cash where it earns the highest yield while actively managing variable debt to minimize interest.

Interest rate changes can affect everything from where you keep your savings to how much you pay to borrow. If you're weighing a major financial decision or want help adjusting your strategy as rates change, a financial adviser can help you look at the bigger picture and determine what makes sense for your goals.

Use the tool below to connect with a vetted financial professional today:

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If you’re looking to grow your money without facing any market risk, a certificate of deposit (CD) might be an appealing choice. But unlike making regular deposits into a savings account, a CD usually has just one initial deposit, and you’ll need to determine how much you should invest.

There’s no universal dollar amount or percentage general rule, and the deposit amount depends on your individual situation. To start, consider the money’s purpose and when you’ll need it. When you deposit money into a CD, it’s locked up for a fixed period, which could be several years, so your CD should generally contain money you won’t need to access soon for everyday expenses or emergencies.

Because CDs generally offer a guaranteed rate for a set term, they can be useful for money you know you won’t need right away. The key is deciding which savings you can comfortably lock up and which should remain easily accessible. Before putting money into a CD, make sure you have enough cash available for emergencies and other near-term expenses.

Keep your emergency fund out of a traditional CD

CD terms can range from several months to five years, though you might occasionally find terms as long as 10 years. If you withdraw your money before the CD matures, you'll usually pay an early withdrawal penalty.

Because of those restrictions, a traditional CD generally is not the right place for emergency savings. A high-yield savings account (HYSA) or another liquid account gives you easier access to your money without an early-withdrawal penalty.

Before opening a CD, make sure you have enough accessible cash to cover emergencies and upcoming expenses, such as insurance premiums, home repairs, taxes and medical costs. Once those needs are covered, you can consider putting additional savings you won't need right away into a CD.

Match the CD amount to a specific savings goal

If you have a specific savings goal in mind, you can use your CD to help you reach it. You could use a CD in several ways by depositing:

• $20,000 you’ve saved into a short-term CD for a car you plan to buy next year
• $50,000 you’ve saved toward a downpayment on a home you plan to buy in two years
• The cash you’ve saved for a major renovation you plan to start in three years

If you know you won’t use that money until a certain date, a CD can serve multiple purposes. It essentially puts a "do not touch" sign on the money, which could help you save it. At the same time, the money earns interest, helping it grow.

Calculate whether the return is worth locking up your money

Current 12-month CD rates average 1.71%, but shopping around can make a significant difference. Some of the top one-year CDs we have found currently offer annual percentage yields (APYs) of 4.20% to 4.25%. Minimum deposits vary, though, ranging from $1,000 at Accordia Bank to $5,000 at Colorado Federal Savings Bank.

At 4.25% APY, here is approximately how much different deposits could earn over one year:

• $5,000 = $212.50
• $10,000 = $425
• $25,000 = $1,062.50
• $50,000 = $2,125

Some of the top high-yield savings accounts currently offer APYs of 4% or more. For example, Newtek Bank currently offers 4.20% APY with no minimum deposit, while Poppy Bank offers 4.00% APY with a $1,000 minimum deposit.

That's competitive with today's top one-year CDs, but there is an important difference. High-yield savings account rates are variable and can change at any time, while a traditional CD typically locks in your APY for the full term. In exchange for that guaranteed rate, you give up some access to your money.

When CD and savings rates are this close, the difference in earnings might be relatively small. The table below shows how much you could earn at different deposit amounts and how much extra a slightly higher CD rate could put in your pocket.

Note: These are illustrative examples based on APY and assume the money remains in the account for one year. HYSA rates are variable and can change at any time, while a traditional CD generally locks in its APY for the term.

Don't overlook early withdrawal penalties

Before you deposit a large amount, check the CD’s early withdrawal penalties. If you need to access the money before it matures, it could cost several months of interest, depending on the bank and term. Penalties can be particularly steep for CDs with longer terms.

Some financial institutions offer no-penalty CDs as an alternative. You’ll still have a guaranteed CD rate, but you can avoid fees if you need to withdraw your money early. You’ll usually be required to withdraw the full amount, and the CD account typically closes once you make that withdrawal.

Rates, terms and early-withdrawal penalties can vary significantly by financial institution. Use the tool below to compare current CD rates and find an account that fits your savings timeline:

Consider splitting a large amount among several CDs

One downside of CDs is that your money is generally locked up until the CD matures. A CD ladder can help you balance earning guaranteed rates with having portions of your savings become available at regular intervals.

For example, say you have $50,000 to deposit. Rather than putting the entire amount into one five-year CD, you could divide it equally among five CDs with different maturity dates. You could put $10,000 each into one-year, two-year, three-year, four-year and five-year CDs.

With this strategy, one CD matures each year, giving you access to $10,000, plus the interest it earned. You can use that money if you need it or re-invest it in another CD to continue the ladder. This gives you more flexibility than locking the full $50,000 into a single five-year CD.

Watch the FDIC and NCUA insurance limits

The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) generally insure deposits up to $250,000 per depositor, per insured institution, per ownership category. Some CDs offer additional insurance coverage beyond the standard $250,000 limit, so be sure to check your financial institution’s specific coverage policy.

If you’re considering making a six-figure deposit, you’ll need to verify and monitor these insurance limits to verify that all of your money is protected.

How much should you put in a CD?

Rather than starting with a specific percentage of your savings, consider how much cash you have beyond your emergency fund, when you will need the money and whether you can comfortably leave it untouched until the CD matures.

The right amount is one that allows you to take advantage of a guaranteed rate without leaving yourself short on accessible cash. Before opening a CD, account for your emergency savings, near-term expenses and other financial goals so you are less likely to need the money before maturity.

Deciding how much to keep in cash is just one part of your larger financial plan. If you want help balancing savings with investments, retirement goals and other priorities, a financial adviser can help you determine where your money might work best.

Use the tool below to connect with a vetted financial professional and get started today:

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The "Great Wealth Transfer" is shifting trillions of dollars between generations, but for many families, it is sparking a silent crisis. Despite the high stakes, inheritance remains a taboo subject — often more difficult to discuss than even dating.

This silence carries a heavy price: It opens the door to misunderstandings that can fracture sibling relationships during times of grief. To protect your legacy and maintain family harmony, it is time to move beyond silence.

Proactive, collaborative planning is the key to preventing conflict. If you're unsure where to begin, here are actionable tips from experts to help keep your family on the same page.

1. Break the ice creatively

Talking about estate planning is weird, especially if you have other siblings. The last thing you want to contemplate is the loss of a loved one; adding financial logistics to the mix can make an already uncomfortable conversation feel even more daunting.

However, there are easy ways in. Lindsay Bryan-Podvin, licensed master social worker (LMSW), financial therapist and founder of Mind Money Balance, told Kiplinger, "Be creative when opening the door to that kind of conversation. One jumping-off point could be a friend dealing with a parent passing away and all the hoops they had to jump through to settle the estate."

"This can open the door to asking if everything is in place." Podvin also recommends this become a conversation you have with other siblings and parents multiple times. "Keep in mind that each person might remember things differently when you chat, so having multiple conversations ensures everyone is on the same page and concrete details are ironed out."

This checklist can help you get the talks started:

• Schedule a time to talk with all siblings and parents in a distraction-free environment
• Ask open-ended questions, like, "What is your vision for your legacy?"
• Discuss crucial details, such as payable-on-death beneficiaries, funeral arrangements and estate plans.
• Acknowledge the emotional weight — both yours and your parents'.
• Establish a regular check-in cadence to keep the conversation open.

Before beginning, knowing how generations view money can help you understand others' perspectives.

2. Understanding the generational disconnect

Maggie Baker, Ph.D., financial psychologist and author of Crazy About Money, told Kiplinger that she believes older generations used to think it was a taboo topic to discuss.

That generational divide becomes clearer in a Morning Consult survey commissioned by Kiplinger as part of our Trillion Dollar Talk campaign, which found that adult children would rather talk to their parents about almost anything besides inheritance, including politics, their parents' physical and mental health, and when they'd be getting married or having kids. The survey also found that parents plan to split the inheritance evenly, while kids prefer to split it differently.

Failing to discuss estate plans in concrete terms can create confusion later, especially when children are left to sort through documents and piece together their parents' wishes. What parents intend, and what they write down, can be difficult to parse.

An omission can be the focal point that drives division between siblings, where natural rivalries can already occur. That's why a change of approach can make all the difference when discussing inheritance. Instead of thinking of it merely in dollars and property, shift the focus to living legacy. What do you want your inheritance to communicate to your loved ones?

On this front, Baker recommends creating an ethical will. This ensures parents share their values about money with children so they can have trust and assurance.

Doing this can shift the focus away from talking about money only, which can be a taboo topic for older generations, and toward actionable strategies to ensure a living legacy they would be proud to bestow. Planning is vital now because when that day comes, grief can cloud clarity.

3. Prepare for the 'fog of grief'

Losing a loved one can be a surreal and extremely stressful experience. It impacts your physical, emotional, relational, spiritual and cognitive lives. It can make even simple things such as doing the laundry or cooking dinner seem like insurmountable tasks.

Another aspect that can add stress and sibling division, if not already planned, is end-of-life expenses. Podvin recommends, "Have a savings account earmarked for funeral expenses. Since it can take estates 12 to 18 months to settle, this prevents you or other siblings from going into debt to pay for the expense."

Here is my recommendation when searching for savings accounts:

Talk to your parents about designating one or more siblings as a payable-on-death (POD) beneficiary. Upon the loved one's death, the bank will release the funds to that beneficiary, who can use them to pay for funeral and other expenses as they arise without having to go through probate.

It's also important to take some time to heal. Grief can manifest itself in many forms, but so can comfort. One effective strategy is "body doubling" — asking a friend to accompany you on a walk or lunch. This simple presence can help you absorb their energy, reducing some of the stress and pain.

As you come together as siblings to make decisions, don't overlook this one component.

4. Address inequality and resentment directly

When you discover how your parents or older loved ones divided assets and cash, it could make one or more siblings feel overlooked. This is why it's important to share how you feel without attacking anyone else.

To demonstrate, if an aging parent falls ill, one sibling likely serves as a caretaker. One way to support someone who's already been stressed in that situation is for the other sibling(s) to acknowledge the caregiver's work.

Podvin recommends, "Make sure to give them a token of your appreciation. One way to do this could be paying for a trip so they can go away and relax after all the work they did or give them some money to help offset the work they missed while helping the loved one."

Regarding the difficulty of processing these feelings of missing out or anger, Baker suggests, "You should call on a financial therapist. Especially if you're hearing echoes from the grave. You can't resolve it because the person isn't there. With a therapist, they have an idea of how to stop the rumination."

Ultimately, direct communication between siblings and parents can help to eliminate many of the conflicts caused by inheritances. By finding creative ways in, ironing out concrete details in advance and sharing/acknowledging when one sibling has done more work than the other, it can reduce tensions from arising at a time when you should be coming together.

As parents, opening the door to this conversation also ensures you're leaving an inheritance that reflects your values and legacy.

If you expect to receive an inheritance, speaking with a financial adviser can help you make plans to maximize your wealth and achieve your financial goals while keeping in mind your relative's values, so you're not overwhelmed when you receive it.

Use the tool below to connect with a vetted financial professional who can help:

More Trillion Dollar Talk

• Manage an Inheritance Like a Pro in Just 7 Steps
• Keep, Sell, or Rent? What Happens Tax-Wise When You Inherit a House
• What Happens When You Inherit a House — With Your Siblings
• Why Leaving an Equal Inheritance to Your Children Could Backfire

In the hectic pace of everyday life, it's easy to lose sight of the bigger financial picture. You may have your 401k contributions set and maybe even an automatic monthly transfer to your savings account keeping you on track with your long term goals.

But it's still easy to fall into financial traps that slow down your progress toward your goals and put unnecessary pressure on your monthly budget.

From money behaviors that hold back financial success to those little purchases here and there that add up to a larger chunk of your cash than you realize, here are five common financial traps and some tips for pulling yourself out of them.

1. Keeping your emergency fund in a low yield savings account

There is a well earned sense of accomplishment you feel once you hit your target emergency fund number. But too often, savers get so focused on how much they're putting into savings each month that they don't think about how much they're earning on those savings.

But a high-yield savings account does a lot of important work for your emergency fund:

• A competitive interest rate can help your emergency savings keep pace with inflation. While it might not fully offset rising prices, earning more interest helps limit the loss of purchasing power over time.
• The interest you earn grows your emergency fund without requiring additional contributions. If you eventually need to withdraw money for an unexpected expense, that extra interest means you’ll have a little more available when you need it.
• Once your emergency fund is fully funded, the interest it earns can support other financial goals. You could leave it in the account as an extra cushion or periodically move the excess toward retirement, investments or another savings goal.

So if you just opened whatever savings account your current bank happened to offer, take a few minutes to compare your current interest rate to what you could be earning elsewhere.

You can start by using the savings tool below to search for some of the best high-yield savings accounts available right now:

2. Lifestyle creep

If you feel like you're living paycheck to paycheck despite your income growing over the past few years, you might be dealing with lifestyle creep. This happens when you start to spend a little more each month as you earn more because, technically, you can afford it.

But do you actually want that hard-earned raise you got to go toward a few extra nights of takeout or a more expensive car note? Or do you want it to go toward a more luxurious retirement and better protection from financial emergencies?

While there's nothing wrong with using some of your money to enjoy your life now, it's important to stick to a budget and be intentional about where each dollar goes, even when budgeting is no longer about just surviving to the next paycheck.

If you feel like your money is disappearing without knowing where it's all going, there are a lot of great budgeting apps that can help you regain control and figure out the best way to fund both your long term goals and your life today.

3. Piling up forgotten subscriptions

It seems like just about everything has a subscription now. It's not just streaming services or the gym you never go to — though those are a big part of the problem. It's also the subscription features in your car, the "subscribe and save" auto-ship orders you forgot about, the software or apps you forgot to downgrade to the free version after the free trial ended.

The average American now spends over $200 per month on subscriptions. That's $2,400 per year that could be going to your emergency fund, your 401k, or even just toward more valuable experiences like vacations or dining out at your favorite restaurant.

Taking just 30 minutes every year to do a subscription audit can potentially free up thousands of dollars each year to go toward more worthwhile purchases and goals.

4. Being too risk averse

Squirreling away all of your money in only the lowest risk assets doesn't feel like a financial trap. It feels safe. But there is such a thing as holding on to too much cash or having too much in your emergency fund.

For money you don't need to touch in five or more years, you should embrace at least a little more risk in order to maximize your wealth-building potential.

One of the easiest ways to manage your anxiety around risk while allowing yourself to allocate a little more of your cash to higher risk, higher yield investments is to work with a certified financial planner. With the right match, you can discuss your concerns and develop an investment strategy that takes advantage of higher return opportunities without pushing you too far out of your comfort zone.

If you don't have a financial adviser yet, you can start the process of finding one with our matching tool below, powered by Bankrate:

5. Letting one spouse make all of the financial decisions

Even if you've been vigilant about avoiding other common financial traps like lifestyle creep or forgotten subscriptions, this one can be especially hard to notice. Whether you're in a single-income or dual-income household, you should always make sure that both adults are equally involved in financial decisions.

Why is this a financial trap? Firstly, because it can cause a lot of strain in the relationship when only one partner fully understands the household's financial picture. It's not fair to expect your partner to help you achieve financial goals that they aren't really aware of.

Secondly, if the spouse who handled the money passes unexpectedly, the one who wasn't involved is going to be left with the monumental task of figuring out the finances while in the depths of grief over that loss.

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We've all made at least one financial mistake we wish we could undo. For some, it's an over-reliance on credit cards. Others may wish they'd set more money aside for emergencies.

According to a report from the TIAA Institute, 76% of current retirees say they regret not starting to save earlier in their lives and 71% wish they'd saved more.

Whatever the case may be, we all experience financial setbacks. The key to getting back on track depends on how we approach the recovery.

1. What just happened?

Financial recovery starts with an honest look in the mirror. And it's easier said than done. Confronting debt, savings setbacks or feeling like you've missed important financial milestones is uncomfortable. But pretending the situation doesn't exist isn't going to solve it.

Take time to evaluate what's happened. What triggered the financial changes? An unexpected emergency expense? A sudden job loss? Spending habits that gradually spun out of control?

Understanding what caused things to take a turn can make it easier to figure out what needs to change moving forward. Identifying the problem allows you to begin finding the solution.

2. Start small

As you're working to turn things around, it can be easy to feel like you have to solve everything overnight. Remember: These problems weren't created overnight, so start small.

Setting up automatic transfers to a savings account, paying off one debt at a time or reducing a few monthly expenses are all great places to start. These changes may seem minor, but consistency is key.

Building better habits creates momentum, making larger goals feel more achievable. As time passes, the plan can be changed to keep up with the different phases of your life.

3. Adapt and adjust

When it comes to financial recovery, many people believe they can simply make a plan, set it and forget it. But life is constantly evolving and your plan should be able to adapt. Unexpected expenses, income changes and new priorities all happen more than once.

Instead of seeing these moments as failures, view them as opportunities to make changes and move forward. It's not about following the original plan exactly — it's about remaining consistent in pursuing your long-term goals even when the route changes course.

Financial plans aren't meant to be rigid. They're meant to grow alongside your life. The next time something comes along and alters your circumstances, identify what's changed, understand how it's impacted your goals and make the adjustments needed to bounce back.

4. Don't dwell on the past

Recovering from a financial setback isn't easy. But it doesn't have to happen overnight and you aren't expected to do it alone. If you're not sure how to adjust your plan or choose your next steps, work with a trusted expert to get professional guidance and accountability.

As you go through the process, don't dwell on past mistakes. What's important is taking action to get back on track.

Alex Duffy has been in the customer service and financial services industry since 1999. His expertise spans loans, debt consolidation and comprehensive financial planning, emphasizing smart money management and family protection.

Adam Coarts is the owner and senior agent at Goldfinch Financial Group in Des Moines, Iowa. He formed Goldfinch Financial Group to better serve clients as an independent financial professional.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

What happens to the money in your savings accounts when you pass on? Making sure those funds go where you intend is an important part of estate planning, yet savings accounts can be easy to overlook.

Without the right designations, your savings could end up going through probate, potentially delaying when your heirs can access the money. That could leave your family paying out of pocket for expenses you intended those savings to cover, such as final expenses.

A new survey conducted by Morning Consult on behalf of Kiplinger found that just 36% of parents have designated beneficiaries on retirement accounts or life insurance policies, highlighting how easy this relatively simple estate-planning step can be to overlook.

Here's how to avoid these common pitfalls, streamline the transfer and protect your financial legacy.

What happens if you don't name a beneficiary?

If you die without naming a beneficiary on an individually owned savings account, the money might become part of your estate and have to go through probate. Once the bank learns of your death, it could restrict access to the account until the person legally authorized to handle your estate can take control of the funds.

Who ultimately inherits the money will depend on your estate plan and state law. If you have a will, the funds generally become part of the estate distributed according to its terms. If you die without a will, known as dying intestate, state law determines which relatives inherit your assets.

Read more: Probate: The Terrible, Horrible, No Good, Very Bad Side of Estate Planning

If you already have a trust as part of your estate plan, naming the trust as the beneficiary might be one option. Danny Beckwith, a certified financial planner and financial adviser at First Financial Consulting, told Kiplinger, "Name the trust as your beneficiary. It will make it a lot easier to work with the banks."

Even if you've already named beneficiaries, it's important to review your designations periodically, particularly after major life changes such as a marriage, divorce, birth or death. Beckwith suggests reviewing beneficiaries every other year.

"You wouldn't believe how many mistakes happen, and by clarifying, you're providing peace of mind that your legacy will go on as you intended," he says.

But you don't necessarily need a trust to help your savings account avoid probate. Another option is to name a payable-on-death beneficiary.

How to designate someone as a payable-on-death beneficiary

Another option is to add a payable-on-death (POD) beneficiary to your savings account. After you die, the funds generally pass directly to the named beneficiary without going through probate.

The beneficiary will need to contact the bank and provide the documentation it requires, typically including identification and a certified copy of the death certificate.

To add a POD beneficiary to your savings account:

• Contact your bank and ask how to add a payable-on-death beneficiary.
• Provide the beneficiary information the bank requires, which might include their full legal name, date of birth, address and Social Security number.
• If you're naming multiple beneficiaries, specify how you want the funds divided among them, often using percentages.
• Complete and submit the required paperwork. Depending on the bank, some documents might need to be notarized.

Keep in mind that avoiding probate doesn't necessarily eliminate potential tax considerations. Depending on where you live and the size of your estate, state estate or inheritance taxes could still apply.

What your family should know

The most helpful gift you can leave your heirs is clarity. Beckwith recommends, "I am a huge fan of parents letting their children know where everything is and what they will receive. Where we see the biggest problems is that the kids don't know what they're inheriting; it can be daunting to find where everything is."

Clear communication ensures your legacy reflects your values while also preventing sibling conflicts. Yet many families aren't having those conversations. The Trillion Dollar Talk survey found that two in five families have never discussed inheritance.

While you don't have to discuss exact dollar amounts, giving heirs a window into what they're receiving can help them plan now, so they don't have to contend with that when the time comes.

It also prevents them from having to hunt for accounts or legal documents they'll need during an already stressful time. Knowing where to turn can give them peace of mind while honoring your legacy.

A checklist for heirs

Create a document that serves as the roadmap for your beneficiaries. Keep this document in an accessible location known to your heirs and include these essentials:

• A list of all financial institutions where you hold accounts.
• Specific account numbers and the type of each account (e.g., savings, checking, brokerage).
• Updated contact information for your financial planners, advisers, or attorneys who can assist with the transfer.

Ultimately, you’ve worked hard to build your savings, and a little planning now can make things easier for your loved ones later.

Contact your bank to review your beneficiary designations and make sure they still reflect your wishes. It’s also a good time to create or update a roadmap showing your heirs where your accounts and other important financial information can be found.

Taking these steps now can help ensure your money goes where you intend and give your family one less thing to sort out during an already difficult time.

If you're an heir trying to make sense of an inheritance, or you want help preparing your own finances for the next generation, a financial adviser can help you understand your options and build a plan that fits your goals.

Use the tool below to connect with a vetted financial professional who can help:

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In a survey of over 4,200 Kiplinger readers earlier this year, Charles Schwab was the overwhelming favorite among respondents for internet banks. It's won the annual Kiplinger Readers' Choice Awards in this category three times and it's not hard to see why readers love it.

"Schwab bank is perfect," raved one Kiplinger reader, adding that the internet bank "goes above and beyond and is absolutely the best in customer service hands down."

Whether you've been considering Schwab bank specifically or you're just exploring your options for moving your money away from your current bank, find out why Kiplinger readers voted Charles Schwab the best internet bank for the third time.

1. Manage all of your wealth in one place

One of the most cited reasons Kiplinger readers keep choosing Schwab as their favorite internet bank: the convenience of being able to manage all of their accounts at one institution.

"I like housing our checking, savings, brokerage and IRAs in the same place," wrote one reader. Alongside all the typical checking and savings account options you expect from any bank, Charles Schwab also offers various loan products, retirement accounts, brokerage accounts, money market funds and even a trading platform.

With all of your finances on one dashboard, it's easy to move money around and monitor your complete financial picture.

2. No unnecessary fees

No one likes getting nickel-and-dimed by their bank. At a time when just about every major financial institution seems to be charging everything from "maintenance fees" to ATM withdrawal fees, Schwab's fee-free checking accounts are a breath of fresh air.

A Schwab account "costs nothing and works well," said one reader. Not only will you not have to worry about getting hit with maintenance or inactivity fees at Schwab, but the internet bank also covers fees you might be charged elsewhere.

"They pay any fee on any ATM that I use," said one enthusiastic Kiplinger reader. Schwab is one of the few banks to offer unlimited ATM fee rebates. That's a relief when you need cash. There's no need to track down a Schwab location for a withdrawal. You can head to whatever machine is closest to you and grab the cash you need without worrying about fees.

Those fee rebates apply to any ATM fee anywhere in the world. Between that and the zero transaction fees, Schwab checking accounts are just as great for travelers as they are investors.

3. FDIC insurance and robust security features

When it comes to your cash, you don't want to cut corners with security. That's one area that sets Schwab apart from others. Many internet banks are technically fintech companies that partner with brick and mortar banks to offer banking services. As the 2024 bankruptcy of Synapse Financial Technologies revealed, fintech companies aren't FDIC insured because they aren't technically banks. That can leave your money vulnerable if the company goes under.

You don't have to worry about that here because Charles Schwab is a true member FDIC bank, so your checking account is insured up to the standard $250,000.

In addition to being FDIC insured, Schwab accounts come with other security features like fraud alerts, travel notifications and the ability to quickly and easily lock or unlock your debit card as needed to prevent theft.

Where you bank is just one piece of your financial picture. If you're looking for help bringing your savings, investments and retirement strategy together, a financial adviser can help you build a plan around your goals.

Use the tool below to connect with a vetted financial professional today:

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Your 70th birthday is a major life milestone. From a financial perspective, you now qualify for the highest Social Security benefits (if you waited to claim Social Security at 70) thanks to delayed retirement benefits and, if you worked until this age, potentially more higher-earning years, which can also translate to a higher Social Security check.

But it can also be a rough transition for retirees, who've spent decades saving for this moment and now find it surprisingly difficult to watch their retirement savings go down — even if you've done all the planning and triple-checking to make sure your withdrawal amount is sustainable.

Whether you're worried about running out of money in retirement, overwhelmed by estate planning, or just generally unsure of how you should approach retirement planning when you're already retired, here's a financial checklist for your 70s to help you stay on track and feel more confident about enjoying your money.

1. Create a realistic spending plan, then spend your money

When you're still working, retirement planning is about identifying a healthy target number to save that will give you the lifestyle you want. By your 70s, "Retirement planning should be less about putting life on hold in the name of preservation and more about funding the experiences, and legacy that matter most," Nancy Anderson, director of wealth planning programs at Key Private Bank, told Kiplinger.

While coming up with an annual spending amount on paper is straightforward, shifting from a saving mindset to a spending mindset is much harder. To help make that behavioral shift, Anderson recommends:

• Create separate accounts for separate expense categories. As cash comes in from Social Security, distributions and other income sources, fund your household expenses account first. Put the amount you've allocated for travel and hobbies into a separate account. That way, you can be confident that your essential costs are covered, and you can see at a glance exactly how much you can afford to spend on travel and hobbies. "Knowing that money has been earmarked for a specific purpose can make spending feel more comfortable and intentional," Anderson explained.
• Claim Social Security now if you haven't already. While delaying Social Security can increase your benefits by up to 24%, "waiting beyond age 70 does not create additional value," she said. This guaranteed income isn't vulnerable to market volatility and can give you a spending floor — the minimum you'll be able to spend each month even if all your other assets disappeared.
• Make a plan for required minimum distributions (RMDs). These kick in in your mid-70s and often catch retirees by surprise, warned Anderson. This can throw off your tax planning by increasing taxable income if you don't plan for it. But there are strategies you can use to mitigate that if you get a plan in place before they kick in.
• Review your withdrawal amount annually. Your annual withdrawal amount isn't a "set it and forget it" number. Anderson recommends reviewing your spending amount annually to make sure it's still sustainable. "An annual review provides an opportunity to adjust spending based on market performance, inflation, and personal circumstances," she said.

2. Stress-test your finances annually

In addition to reviewing your withdrawal amount annually based on current market conditions and personal needs, Anderson recommends stress-testing your finances against possible future risks.

"Running stress tests that account for market volatility, inflation, healthcare costs and longevity can help identify potential shortfalls before they become serious problems," she noted.

By examining all the "what if" scenarios you can think of, you'll see exactly how long your savings would last in each one. More important, you'll be able to come up with contingency plans and adjusted spending limits that account for those various risks.

"In many cases, relatively small changes can significantly improve long-term outcomes," Anderson said.

By running these stress tests annually, you can anticipate problems before they become serious and, in many cases, avoid needing to make drastic changes to your spending. "The sooner adjustments are made; the more options are available and the less dramatic the changes typically need to be," she noted.

This habit will replace those vague fears of running out of money with a concrete picture of how your savings would hold up under different scenarios and what adjustments you can make to address specific threats.

3. Plan your retirement in five-year chapters

The biggest risk in retirement isn't necessarily running out of money, Anderson says. "Sometimes, it's about reaching a point where you no longer have the health, energy, or opportunity to do the things you want to do."

That's why she advises clients not to assume spending will remain constant from age 70 to 100. Instead, she recommends planning in five-year chapters. Start by funding the experiences and bucket list adventures you know you'll regret postponing if health or other circumstances prevent you from being able to enjoy them later.

"Many retirees spend more in the initial phase because they have greater flexibility and often want to travel, pursue hobbies or enjoy experiences they postponed while working," she said.

That higher spending up front might make you anxious if you're stuck in that saving mindset. But when you factor that into the plan by planning in five-year chapters and back it up with those annual reviews and stress tests, you can be confident that your overall spending plan is sustainable.

4. Put fraud protection in place before you're targeted

That generous nest egg you worked so hard to build makes you an attractive target to scammers and fraudsters. It also puts you at heightened risk of financial abuse — especially as you get older and start relying more on family to make financial decisions for you.

"Cognitive decline does not need to be severe before financial judgment begins deteriorating," warned Evan Farr, a Certified Elder Law Attorney and retirement planner practicing in Virginia, Maryland, and Washington, D.C.

Even before cognitive decline hits, modern technology is making scams harder to spot. Taking proactive steps now can go a long way toward protecting yourself in the future. Some of the most effective strategies to do that, Farr says, include:

• Enable transaction alerts on your bank and brokerage accounts so you can catch suspicious activity promptly.
• Set up multifactor authentication on all your financial accounts.
• Learn how to freeze your credit now so you can do it quickly when necessary.
• Make a rule that you'll discuss all major transfers or investment decisions with a designated trusted person, such as your financial planner or attorney, before acting.
• Designate a trusted contact to be notified of suspicious transactions. Most major financial institutions will allow you to note this on your account so that if a bank representative notices signs of a scam, exploitation or fraud, they can reach out to this trusted contact.
• Sign strong power of attorney paperwork, and make sure the person you name has the integrity and capacity to take on that responsibility.
• Be cautious about adding family members jointly on your accounts. Even if you trust the person fully, doing so can create conflicts later around ownership and inheritance that you never intended.

5. Reduce unnecessary financial complexity for your heirs

"Many people by age 70 have accumulated numerous bank accounts, brokerage accounts, retirement accounts, insurance policies, real property holdings, past beneficiary designations, passwords and/or decades of documentation," Farr told Kiplinger.

While this might not be a problem for you, it can be a confusing maze of accounts and records to sift through for your heirs.

Farr recommends clients simplify their financial affairs as much as possible and leave a roadmap to make it easier for heirs to know what's what and where to look. That includes consolidating unnecessary accounts and maintaining an up-to-date account of assets and passwords. It can be helpful to do this with a financial planner so you can spot any old 401k or other accounts you might have forgotten about.

Lastly, Farr said to make sure you "inform those who will act on behalf of your client during incapacitation that the documentation exists and how they can obtain access to it."

6. Get more specific with your estate planning

In the past, it might have been enough to name a beneficiary or have a general plan for how your assets would be split among heirs. As you get older, it's time to get more specific with your estate planning to prevent unnecessary conflict or obstacles when carrying out your final wishes.

According to Farr, "While it was previously sufficient to ask who would receive the decedent's assets upon death, today the decedents' estates must address how the assets will pass, who will administer matters should the decedent become incapacitated, whether probate may be avoided, whether an inheritance should pass directly to beneficiaries or remain protected within a trust arrangement(s), and whether the estate plan will lead to conflict amongst the beneficiaries."

You deserve to enjoy the retirement you saved up for

If you've been feeling too nervous to splurge on vacations or start embracing all the hobbies and experiences you promised yourself you'd enjoy once you retired, know that a lot of retirees struggle with that same anxiety.

By following the steps in this checklist every few years, you can ensure that the "permission to spend" amount you're working with truly is sustainable and that you'll be able to catch any shortfalls or issues early to adjust your spending long before you run any real risk of outliving your savings.

Doing the steps with the help of a financial planner can help ease those fears even more as you'll know that an outside expert helped you come up with that realistic, sustainable spending amount.

Use the tool below to connect with a vetted financial professional who can help you stay on track and make the most of the retirement for which you planned:

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Are you maximizing your hard-earned money? If you've been looking at your bank statements and want to earn a little more, now is a smart time to re-evaluate your savings approach.

Why now? Inflation has remained sticky, giving the Federal Reserve less room to cut interest rates.

Instead, I've found that while high-yield savings accounts have been stagnant, CDs have seen higher rates in the past few weeks. I'll explain when you should make the pivot and how much money you're missing by not doing so.

Is it time to switch to CDs?

I review savings accounts weekly and have found that the best CD rates have been increasing in the past few weeks. The highest CD rates are now outpacing many of the best high-yield savings account (HYSA) rates.

Now, CDs won't be the smartest approach for everyone. If you're still growing your emergency fund or need access to your cash, a high-yield savings account is the smarter move. I recommend the one from Newtek Bank, as it offers 4.20% with no account fees or minimums.

That said, if you're comfortable with your cash flow and emergency fund, use this Bankrate tool to find the best rate for your savings goals:

As you'll see, CD rates are significantly higher than they were even three to four months ago. Locking one in now guarantees you a return and annual percentage yield (APY) that currently outpaces inflation in many cases.

However, choosing the right CD term can feel like a gamble; here's how to clarify your options.

Which CD term is right for me?

CDs are inflexible savings vehicles. Once you lock one in, you must keep the money in the account until the term expires. If you need to break it open, you'll generally face an early withdrawal penalty, which can reduce your earnings and, in some cases, your principal.

That's why being intentional with your savings goals can point you to the right term. If you're concerned about inflation rising again and don't want it to erode some of your future purchasing power, a short-term CD might be worth considering, such as a six-month or one-year CD.

This achieves several objectives:

• You won't have your money tied up for long.
• You'll have the flexibility to pivot to other savings or investment solutions as economic conditions clarify.
• If the Fed decides to hike rates in the future, you'll be in a prime position to capitalize.

Such a move could help you earn hundreds of dollars more in the interim with the higher APY. Here's a comparison of what you would earn with a $100,000 HYSA vs a $100,000 jumbo CD:

Alternatively, if you're approaching retirement and want to move some of your cash to safer investments without chasing APYs, a long-term CD can still be a smart move. You'll earn a guaranteed return, with APYs as high as 4.40%.

That can give you peace of mind and assurance that your money is safe from market dips. CDs at federally insured banks and credit unions are also protected by FDIC or NCUA insurance, generally up to $250,000 per depositor, per institution and ownership category.

If you have a large sum of money to move (think $100,000 or more), a jumbo CD might be worth considering. You'll earn a rate as high as 4.55%, with maturity windows of around one year.

Before signing up for any CD, consider the tax situation.

Factor in the tax implications of a CD

As part of your savings strategy, keep in mind that interest earned on a CD is generally taxable as ordinary income. With CDs that mature in more than one year, you might have to report a portion of the interest as it accrues each year, even if you don't receive the money until the CD matures.

As you calculate your potential return, consider your current tax bracket or consult a tax professional about how CD interest could affect your overall tax liability.

Overall, with some of the best CD rates moving higher, now is a good time to take a fresh look at your savings strategy. High-yield savings accounts remain a smart choice if you're building an emergency fund or need easy access to your cash.

However, if your emergency fund is established and you have money you won't need for a set period, locking in a CD rate might be worth considering. Think about your savings goals and when you'll need the money to determine the right term for you. That way, you can take advantage of a competitive rate without giving up access to money you might need sooner.

Not sure how CDs fit into your broader savings strategy?

A financial professional can help you weigh your options and decide how to put your cash to work based on your goals, timeline and need for flexibility. Use the tool below to connect with a vetted financial professional today:

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• Have $100,000 in Cash? You Could Earn More Than 4% With These Jumbo CDs
• Do You Have a CD Maturing Soon? Here's What to Do Next
• Don't Lock in a Long-Term CD Yet: The Moves to Make Instead

When Trump Accounts launched this summer, most media coverage focused on the federal government's $1,000 seed deposit for eligible children.

Almost no one was talking about the second, quieter piece of the law: Your employer may be allowed to put up to $2,500 a year into your children's accounts, tax-free, and most human resources (HR) departments haven't said a word about it.

That's not an oversight so much as a timing issue. The provision that lets employers contribute — new Internal Revenue Code Section 128 — didn't become legally operative until July 4, 2026, exactly one year after the One Big Beautiful Bill Act created Trump Accounts in the first place.

Employers are still building the framework, and this benefit lands in the same spot health savings accounts (HSAs) and dependent care flexible spending accounts (FSAs) occupied years ago: Legally available, valuable and functionally invisible until someone puts it in front of you at open enrollment.

Right now, the responsibility sits with you to ask, not your employer to make an announcement.

What Section 128 actually allows

Under Section 128, an employer can contribute up to $2,500 per year to the Trump Account of an employee or their dependent, as the IRS detailed in guidance issued this spring. The contribution is excluded from your taxable income and is a deductible business expense for the employer — similar to how an HSA contribution works.

It runs through a formal, written Trump Account Contribution Program that meets nondiscrimination requirements, and it shows up on your W-2 in Box 12 under a new code, "TA."

Two details matter more than anything else here:

• First, the $2,500 limit is per employee, not per child. If you have three children with Trump Accounts, your employer still tops out at $2,500 in total contributions — the money doesn't multiply per dependent.
• Second, employer contributions count against the overall $5,000 annual contribution cap per child. This isn't found money sitting outside the system; it's part of the same bucket your after-tax family contributions fill.

The coordination math

Here's the scenario I walk clients through: Say an employer commits the full $2,500 through a Trump Account Contribution Program. That leaves exactly $2,500 of room before the family hits the $5,000 annual ceiling for that child.

If the family had been planning to contribute $5,000 out of pocket without checking on the employer benefit first, they'd either over-contribute or find out too late that $2,500 of their planned funding was redundant.

For families with more than one child, the math gets more complicated rather than more generous. The employer's $2,500 cap doesn't stretch across multiple kids — it's capped at the employee level. If you have two children in the program, you need to fund the remaining room separately for each child's account, not assume the employer contribution covers both.

The questions to bring to HR

If you're heading into open enrollment, these questions are worth asking your benefits administrator:

• Does our company have a written Trump Account Contribution Program under Section 128?
• Is the contribution funded directly by the company, or offered through payroll as a salary-reduction option?
• Will this show up as code "TA" in Box 12 of my W-2?
• Is the $2,500 limit per child, or capped at $2,500 total for me as the employee?
• What's the deadline to elect this during open enrollment, and is it retroactive for this year?

HR and payroll teams are actively building these programs right now, and asking early gives your employer time to include you in the first wave rather than the next plan year.

Coordinating employer money with personal contributions

This is where tax planning and account structure meet. Once you know whether an employer contribution is coming, and how much, size your own contributions to fill the remaining room under the $5,000 cap — don't layer them on top without checking first.

I think about this the same way I think about bucket planning more broadly: Know what money is already working toward a goal before deciding how much more to commit.

A Trump Account functions as a long-horizon "later" bucket for a child, distinct from a 529 earmarked for near-term education costs. Employer contributions simply become one more funding source to sequence intelligently.

Not the right fit for every family

Before treating the employer match as free money, work through a few questions:

• What's your current vs expected future tax bracket? Pretax contributions defer tax, but if a child eventually withdraws funds in a higher bracket than yours today, that deferral can work against the family.
• Does this crowd out higher-priority savings? If you're still building an emergency fund or catching up on your own retirement contributions, redirecting money to a child's account — even employer-funded — isn't automatically the right sequencing.
• How does this interact with financial aid planning? Account ownership and structure can affect need-based aid calculations differently than a 529 does.
• Is the employer contribution free, or does it come with strings? Some programs may require you to also elect a personal salary-reduction contribution to unlock the match — worth confirming during the same HR conversation.

The employer benefit is worth asking about for nearly everyone — it costs nothing to inquire. Whether to lean into it, and how hard, is a household-specific decision, not a blanket recommendation.

The bottom line

Trump Accounts are only months old, and the employer contribution provision is younger still. The families who benefit most this year will be the ones who ask the right questions during open enrollment — before contribution decisions get locked in for the year.

If you have a workplace benefit sitting on the table, the only way to know is to ask.

Related Content

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• Is a Trump Account Worth It? Projected Growth — and Who Should Skip It
• I'm a Financial Planner: Trump Accounts Are a No-Brainer if You're Eligible (How to Apply)
• Should You Start a Trump Account for Your Child?
• How Trump Accounts Compare With 529 College Savings Plans

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

A new savings vehicle aimed at helping the youngest Americans get a financial head start is now available.

Created under the One Big Beautiful Bill Act, Trump Accounts are available for any eligible child under 18 with a Social Security number. Once the account is opened, parents, relatives, even employers can contribute up to $5,000 per year per child until the age of 18.

Designed to serve as a long-term investment account, the funds can be used for education, the first-time purchase of a home or even retirement. To encourage parents to open an account for their child, children born between January 1, 2025, and December 31, 2028, are eligible to receive a one-time $1,000 contribution from the government.

While the seed money is certainly helpful, Trump Accounts offer families something even more valuable: The power of time.

Trump Accounts and the power of compound growth

When it comes to long-term investing, the length of time those dollars stay in the market can have a greater impact than the amount of money initially invested. That's because investment returns have the ability to generate returns of their own, also known as compound growth. Over time, this compounding effect can allow modest contributions to grow significantly.

So while the initial $1,000 contribution from the government may not seem like much on its own, leaving that money untouched in the account allows it to grow in ways that wouldn't be possible if investing began later in adulthood.

While returns are never guaranteed, the Rule of 72 estimates that investments earning around 7.2% annually will double every 10 years. This means a child who begins investing at birth has a significant about of time on their side.

For example, if a child received an annual contribution of $1,000 starting at birth, with a 7.2% return their account could have a balance of about $39,000 at 18. If the trend continues throughout adulthood, the child could be looking at retirement savings of nearly $1 million by the time they hit retirement age.

Older children may also qualify for additional seed money. The Michael & Susan Dell Foundation has pledged to contribute $250 for the first 25 million eligible children born between 2016 and 2024 who live in eligible ZIP codes with median household incomes below $150,000. To check eligibility, you can enter your zip code on the Trump Accounts Guide.

How to use Trump Accounts effectively

Families may choose to fund Trump Accounts for the sole purpose of covering higher education costs. But the savings in these accounts can be used for much more. If your primary goal is paying for college, 529 plans are still one of the most effective tools available because they offer tax-deferred growth and tax-free withdrawals for qualified education expenses.

For families focused on saving for tuition, it may make sense to use a 529 plan for college while continuing to contribute to a Trump Account for future savings. A child who graduates with student loans still has decades left to repay them. But a retiree who reaches age 65 without retirement savings has far fewer options.

While every situation is different, maximizing as many years of compounding as possible may be more valuable in the long run than simply using the account for education.

In addition to the long-term potential, families should also be aware that the tax rules surrounding Trump Accounts will likely evolve over time. Before making any withdrawal or conversion decisions, it's important to understand how they'll affect taxes under the current law.

Working with a tax professional or financial adviser before making any decisions can help families determine the most appropriate strategy for their situation.

One more way to use Trump Accounts

Aside from building wealth for the future, parents who choose to open a Trump Account can also view it as an opportunity to teach their children about important financial concepts such as budgeting, investing and the value of long-term planning.

Understanding compound growth and delayed gratification can give them the skills necessary to continue managing the account once they turn 18.

Trump Accounts offer a unique opportunity for families to begin investing earlier than ever. While the government's contribution to eligible newborns, and the additional seed money that may be available for those who qualify, provides a great foundation, the true value of these accounts are the amount of time the investments have to grow.

With consistent investing, thoughtful planning and financial education, these accounts give the next generation the ability to start building wealth at birth.

Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor. BWA and Beckett Financial Group are independent of each other. Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.

Related Content

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• I'm a Financial Planner: Trump Accounts Are a No-Brainer if You're Eligible (How to Apply)
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• Is Your Money 'Lazy'? Here’s How to Put It to Work
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

High-yield savings accounts (HYSAs) are one of the best places to keep your emergency funds and other short-term savings. HYSAs often offer significantly higher APYs than traditional savings accounts, putting your money to work to earn more.

Putting your savings into a HYSA can help maximize what it earns in interest while keeping it accessible if you need the cash. But opening a HYSA doesn't guarantee that you're getting the maximum return on your money.

Small habits and overlooked details might quietly reduce your earnings or keep your money from working as hard as it could. Here are five common HYSA mistakes to avoid.

1. Sticking with a low-rate savings account

Many people keep emergency savings in their primary savings account, where it earns a fraction of the interest it could earn in an online HYSA.

Since online banks don't face the overhead that brick-and-mortar banks do, they often pass those savings along to customers in the form of perks, such as higher interest rates on HYSAs. HYSAs currently offer annual percentage yields (APYs) up to about 4.2%, while traditional savings accounts offer an average APY of 0.38%, according to Experian. Interest on both types of accounts typically compounds monthly, meaning your earnings can generate additional interest over time.

Let’s say you deposit $10,000 into a HYSA earning 4% APY. If the APY remains unchanged and you don't make any withdrawals, you could earn about $400 in interest after one year.

By comparison, that same $10,000 in a traditional savings account earning 0.38% APY would earn about $38 after one year. That’s roughly $362 less than you could earn with a HYSA paying 4% APY.

2. Chasing every tiny APY increase

You want to choose a HYSA that offers a competitive rate, but it’s often not worth the hassle to switch banks every time another institution offers 0.05% or 0.10% more in interest. Interest rates are variable, so making the switch for a small increase in earnings might not pay off.

Instead, look for larger and more meaningful perks:

• Convenience: A bank that offers streamlined digital banking or other banking products you need might be an appealing and more convenient option.
• Customer service: If you’ve had a negative experience with your bank’s customer service, then you might consider changing to another bank with a reputation for excellent customer service.
• Account features: It might be worth it to switch to a bank that offers desirable features such as no monthly fees, a low or no minimum balance and lots of freedom on withdrawals.

3. Keeping all your savings in cash

HYSAs are ideal for your emergency fund and short-term goals, since the money remains easily accessible while earning interest. But HYSAs aren't the ideal solution for long-term savings goals.

If you have money earmarked for retirement goals several years away, it might be better invested or placed in a certificate of deposit (CD). According to Bankrate, CDs earn around 4% APY, with top rates reaching 4.35%.

Unlike HYSAs, in which interest rates are variable, CDs feature a guaranteed rate, and their APY might be even higher than a HYSA. Depending on your timeline, a CD might be an ideal choice for your long-term investments.

Not sure where your savings should go? A financial planner can help you build a strategy for your money based on your short- and long-term goals, including how much to keep accessible in savings and how much to consider investing for the future.

Use the Bankrate tool below to connect with a financial professional who can help you map out your next steps:

4. Forgetting to review your account

Since HYSAs feature variable interest rates, your bank might raise or lower that rate over time. Letting your account sit without periodically reviewing it can be a mistake that might cause you to miss out on potential interest.

Check your account's interest rates a few times a year to ensure that it stays competitive. Check a few weeks after Federal Reserve meetings; if the Fed raises or lowers the benchmark interest rate, your bank might also follow. If your HYSA’s APY drops, consider shopping around to see if you can find an account with a more competitive rate.

5. Ignoring FDIC insurance limits

As with any other banking product, it's essential to verify that your HYSA is insured and your money is protected. The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 of your money per ownership category, per insured bank.

For example, if you have a HYSA and a checking account at an FDIC-insured bank, then up to $250,000 of the value of those combined accounts is insured.

If you have larger balances exceeding $250,000, consider dividing those balances across multiple banks or multiple ownership categories, such as by putting your money in a single account, a joint account and a trust account.

Contact any bank you use or are considering using, and verify that it’s FDIC-insured so that you know your money is protected. The bank can also help you determine which types of accounts are insured, so you can strategically and confidently choose the best places for your money.

Make the most of your high-yield savings account

Opening a HYSA is a smart first step to putting your money to work, but getting the most from the account requires making an extra effort. Periodically review your APY rate, be sure you understand how the account works, and make sure your savings strategy fits your financial goals.

Performing a few check-ins each year, such as by verifying the HYSA’s current interest rate, can help ensure your cash continues earning a competitive return. It can also ensure that your money stays protected, and your financial strategy stays aligned with your short- and long-term goals and needs.

Savings rates can change frequently, so it pays to periodically compare your account with other options.

Use the Bankrate tool below to explore some of today’s top-earning savings accounts and see whether you could earn more on your cash:

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• 3 Reasons Fidelity is Kiplinger Readers' Favorite Full-Service Broker

Fidelity has won the Kiplinger Readers' Choice Awards four years in a row for their brokerage services and their popularity among readers shows no sign of waning. One reader even called it, "The best of the many that I have used. I have suggested it to family and friends."

Countless readers have stayed with Fidelity for decades and have multiple accounts with the broker and wealth management service. With so many lifelong loyal customers, the company must be getting something right.

Find out the top three reasons readers cited when explaining why they continue to name Fidelity Kiplinger Readers' Choice Awards best broker.

1. Responsive customer service

Among the most talked about reasons for choosing Fidelity was the brokerage's unparalleled customer service. "I can always access customer service even on weekends," one reader says. Not only are representatives available 24/7, but readers say wait times to get someone on the phone are typically short.

More importantly, the representatives you reach are likely to be knowledgeable, friendly and capable of finding the answers you need quickly, according to many Kiplinger readers.

2. An easy to use website with both analytic and educational tools

After its unmatched customer service, Fidelity's online and mobile experience were the second most-mentioned features that Kiplinger readers appreciated. One reader called the website and mobile app "awesome," stating that both were "easy to navigate, easy to understand, easy to complete whatever I need to do."

The intuitive investing platform "can be used by beginners as well as seasoned investors," says one reader. That's because Fidelity provides a wealth of resources to meet the needs of investors at any level of experience.

For traders and self-directed investors, Fidelity Trader+, the broker's trading platform, provides advanced tools including market research, real-time quotes, customizable alerts, charting and technical indicators to help you analyze your trades.

Meanwhile, for beginner investors, Fidelity provides an always-growing database of educational guides, webinars and other learning resources to help you become a stronger, more confident investor.

3. A wide variety of products and services

According to one Kiplinger reader, "Fidelity has every kind of product that anyone could want." That's not an overstatement. In terms of which assets you can trade, you'll find all the stocks, bonds and ETFs you expect. But you'll also be able to invest in options, crypto, CDs and mutual funds.

Beyond the wide variety of assets, readers like the even wider variety of products and services Fidelity offers. Fidelity is "always introducing new products," one reader says.

In addition to a standard self-directed brokerage account, Fidelity also offers a crypto trading account, a full range of retirement accounts and HSAs. For investors who want to find that balance between managing your investments and getting expert support, you can explore products like Fidelity Go, a robo advisor service, and Basket Portfolios, which include prebuilt models designed by experts that you can play around with and tailor to your own goals.

Beyond investing, Fidelity also offers a range of cash management accounts, a rewards credit card with cash back that can be deposited directly into your eligible Fidelity account, mortgages and loan products. These include a securities-backed line of credit, which works somewhat like a HELOC but uses your investment portfolio as collateral rather than your home.

For kids, investors have access to custodial accounts, 529 plans and even Fidelity Youth accounts, which are teen brokerage accounts that help kids learn and practice investing in the real world, but with parental oversight.

Because Fidelity also offers a full suite of wealth management and financial adviser services, many readers enjoy the ability to create their own mix of self-directed accounts and professionally managed portfolios. Customers have the flexibility to have some accounts professionally managed (say, your 401k or IRA) while self-directing other accounts, like your brokerage account–all while keeping everything in one place.

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I like long-term CDs. They earn a guaranteed rate of return, the APY won't change, and they can help you meet long-term savings goals. In a world full of questionable financial options, they're among the most dependable things you can get.

Yet, timing when to open one is imperative. Locking in a rate now, with the current 3.50% inflation rate as a permanent ceiling, will likely prove short-lived, which means inflation might erode some of your future purchasing power. With the ongoing war in Iran raising gas prices again, expect inflation to follow suit.

On top of this, the Federal Reserve is currently holding steady. However, if the bond market tightening doesn't bring down inflation through higher borrowing costs, they may be forced to hike rates — meaning today's locked-in rates could quickly look like a missed opportunity. With that in mind, here is the short-term strategy I'm currently using, as someone who checks and analyzes savings rates for a living, to stay flexible as the market settles.

Short-term CDs provide the dependability and flexibility you want now

I recommend a short-term CD in the interim. With one, you'll have all the benefits you come to love about CDs, with quick access to your cash.

They work best if you have an emergency fund already established and don't need to touch your money during the term. If you have to break it open for any reason, you'll lose some of your earnings to early termination fees. Thankfully, with terms that accommodate all savings goals, you can find the best fit for your goals and cash flow.

Use this Bankrate tool to shop for and compare the best CD rates quickly:

Having quick access to your cash is important because if inflation continues to creep back up, you might want to revisit where you invest your cash when the CD matures. And if the Federal Reserve decides to hike rates later this year, it places you in an excellent position to capitalize on higher returns.

Does waiting really make that big of an impact?

Timing matters when choosing the right savings account. And knowing when to lock in a long-term CD can be the difference between earning hundreds to thousands of dollars more.

To demonstrate, say you locked in a $50,000 five-year CD at 4.00%. You'll earn $10,832.65. However, if you wait a few months and the Fed hikes rates, you could have access to higher returns. A five-year CD at 4.25% APY will earn you $11,567.33, a difference of almost $735, just for waiting a few months.

That's pretty significant, and it's one of the reasons why I would wait on a longer-term CD. On the other side of the coin, you might be thinking, well, would waiting hurt me? After all, what happens if CD rates drop in the interim?

Rest assured, I don't see that happening any time soon. I review CD rates biweekly and have found that some banks have raised CD rates. Here are some of the ones I found recently that rose:

And with inflation so high, cutting the federal funds rate would not be a sound strategy to curb rising costs. While waiting carries the risk of returns remaining flat, the potential upside of a higher rate makes this strategy a smart move in this environment.

Ultimately, short-term CDs are the better play right now. They provide a safe place to park your cash while the economic landscape settles, without locking you into a long-term commitment. By prioritizing terms that keep your money accessible, you're not just earning a competitive term — you're maintaining the flexibility to pivot as soon as better opportunities arise.

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As someone who reviews savings accounts and inflation for a living, it's become easier to see where things are heading. Understanding how these trends move can be the difference between keeping your money in the right account and missing opportunities to maximize growth.

Case in point, inflation remains stubbornly high, and ongoing tensions in the Middle East could keep pressure on energy prices. David Payne of the Kiplinger Letter projects inflation will be around 4.0% to end the year. If higher inflation persists, it could eventually force the Federal Reserve to hike rates. For now, though, the Fed left its benchmark interest rate unchanged at 3.5% to 3.75%, signaling that policymakers are still waiting for clearer evidence that inflation is moving back toward its 2% target. For savers, the Fed's decision means today's high-yield savings accounts and CDs remain attractive options, though the next move will depend on how inflation evolves.

Navigating these shifts is the difference between letting your money stagnate and putting it to work. If you have $10k sitting on the sidelines, here are the smartest places to park it — and the traps you need to avoid.

The smartest places to park your cash in the interim

First, if you're building an emergency fund or have short-term savings goals that require liquidity, a high-yield savings account will be the best option. And when you're looking for one, I recommend finding an account earning at least 4.00% APY, since that's likely where inflation will remain for the foreseeable future.

Based on my research, this savings account is a home run option:

Meanwhile, if you have an emergency fund and don't require any liquidity, I would recommend a short-term CD. Look for options between three and six months, since if a rate hike happens, it will likely be in the fall or winter.

If it does, it puts you in prime position to capitalize on even higher rates when your CD matures. Use this Bankrate tool to compare and find the best solution for your money:

Another positive about this approach is that if the Fed doesn't hike rates and inflation remains high, you have flexibility to decide where to hedge your cash in the near future.

Whether that's renewing your existing CD or putting money in the market, you won't have to worry about your future purchasing power eroding due to inflation.

These are the savings accounts I would cautiously consider

Long-term CDs are cozy solutions. After all, once you open one, you're guaranteed to earn that APY no matter what happens. If you're approaching retirement and are concerned about market volatility, it can be a smart approach.

Here are some of the top options I found to help you:

One thing to remember is that the longer your money sits in a CD, the more susceptible it could be to losing future purchasing power if inflation continues to rise. So these options work best for savers with an emergency fund, short-term savings and retirement goals all either fully funded or on course to be.

Avoid this savings trap

The only savings accounts I don't recommend using right now are those at brick-and-mortar banks, where your APYs will be much lower than the current inflation rate of 3.50%. This means every dollar you have in one of these accounts loses purchasing power every month you keep it there.

That said, some local banks do offer higher returns on money market accounts or CDs if you deposit enough money into them, usually between $10,000 and $25,000. So, if you're in a position where you don't feel comfortable moving away from your local bank, ask about any savings incentives they have that can help you.

Ultimately, managing your cash effectively requires a strategic approach. Take a moment to audit your current accounts against the 3.50% inflation rate.

By prioritizing high-yield options that keep your money working for you, you can strike a balance between liquidity for immediate needs and growth to hit your long-term targets. You'll also protect your purchasing power and make the most of your $10k savings.

The right savings strategy is a strong starting point, but a financial professional can help you build on that foundation with a personalized plan for your long-term goals.

Use the tool below to connect with a financial advisor and get started today:

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I've used peer-to-peer services for years, and Cash App has become my go-to. Its combination of ease of use with expanded financial features exceeds what some traditional banks offer.

Therefore, it's no surprise that Kiplinger readers also think highly of the platform. Each year, Kiplinger holds its Readers' Choice Awards, an online survey conducted in the winter, to learn which services and products you recommend most. For peer-to-peer payment services, we asked readers to rank their favorites based on ease of use, most recommended and overall satisfaction.

With this in mind, I'll show you three reasons why Kiplinger readers ranked Cash App so highly. I'll also cover other peer-to-peer services earning high marks in our survey.

1. Cash App is simple to use

Many Kiplinger readers rated Cash App highly for its ease of use. Opening an account takes a few minutes, and you can link your bank using your debit card.

From here, moving money from your bank account to Cash App is instant, making it quicker to send payments and more beneficial for recipients, who don't have to wait days for funds to arrive. I regularly use it to send payments to stylists, lawn care companies and pet sitters and have never experienced problems.

Most importantly, it's free to send money using bank funds or a debit card. If you use a credit card, there's a 3% transaction fee, though some credit card companies can treat this as a cash advance, imposing fees and higher interest charges, so double-check with your bank before using this method.

Along with ease of use, Cash App also excels in this one category.

2. Cash App offers advanced security features

Sending money online is never a 100% comfortable process, yet Cash App does a lot to dispel any fears you might have. When you set up an account, you can activate two-factor authentication. How it works is that it texts or emails a code you confirm before accessing your account.

The platform also has other ways to safeguard your cash. You're required to set up a PIN code, fingerprint or face ID before sending money. This ensures that every time you send money, it comes from you, and not someone pretending to be you.

Cash App also watches your payments closely for any signs of errors. To demonstrate, if you try to send the same amount of money to the same recipient in a short time, it will ask if you meant to send it, helping you avoid any unintended duplicate payments.

3. Cash App offers other financial services

While many use Cash App for sending money, it has a wealth of other features you can use, such as:

• A high-yield savings account: Earn up to 3.25% APY when you spend $500 monthly with your Cash App card
• Investing: Buy stocks and ETFs from your favorite companies starting at $1
• Parental tools: Teach your kids and grandkids responsible cash use with custodial accounts for children six to 12, and parent-sponsored teen accounts from ages 13-17
• Tax filing services: Unlike many tax services, with Cash App, you can file your taxes for free no matter how complicated your tax situation is
• Accepts cash from other providers: If you have friends who need to send you money but don't have Cash App, you can use the Pool feature to receive money via Apple Pay or Google Pay

Along with Cash App, the other two top-rated peer-to-peer payment services were Zelle and Apple Cash. In both instances, Kiplinger readers remarked that the services had excellent customer service and delivered superior satisfaction.

Overall, Kiplinger readers chose Cash App as the top peer-to-peer payment service provider for its ease of use, security features and robust financial offerings.

Is it for everyone? No. If you're uncomfortable using digital services like Cash App, you can always pay via check or cash. Keep in mind that peer-to-peer services, such as Cash App, don't offer FDIC insurance, so I would only use them for payment services, not a standalone bank account.

However, if you send peer payments often, this is among the easiest and most secure ways to do so.

Here's how to get started with Cash App:

• Link your bank account using your debit card for instant transfers
• Enable two-factor authentication
• Set up a PIN to protect outgoing payments
• If you plan to use your credit card for payments, check with your bank to see if they charge cash advance fees
• Explore other financial features, such as savings, investing or even filing your taxes for less

Digital payment apps can simplify your day-to-day finances, but a financial professional can help ensure you're also making progress toward your long-term financial goals.

Use the Bankrate tool below to connect with a financial professional who can help you build a personalized financial strategy.

Related content

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The original Financial Independence, Retire Early (FIRE) movement paved a path to early retirement through aggressive saving and extreme frugality. Today, many people view FIRE as a way to gain financial independence and flexibility, rather than retiring as early as possible.

Many early FIRE advocates aimed to save 50% to 75% of their income, working toward a goal of accumulating about 25 times their annual expenses before retiring.

But in today's world of high housing prices, inflation and healthcare costs, the FIRE movement might feel impossible. While some individuals may have found financial independence through the FIRE movement, there's a shift in the movement and in how people approach financial independence.

Why the FIRE movement is changing

The FIRE movement was popularized in the 1990s, but today's economy is vastly different, and the conversation has shifted from early retirement to financial flexibility.

Take the housing market, for example. According to the National Association of REALTORS, the median existing-home sales price was $114,600 in 1995. By 2023, the median price had climbed to $389,800. Simply buying a home now requires more of your paycheck, making it much harder to save 75% of your income under a traditional FIRE strategy.

Inflation has created additional financial strain, and tariffs and geopolitical tensions have contributed to higher costs for some goods. Healthcare costs have also skyrocketed. According to the Peterson-KFF Health System Tracker, which uses Centers for Medicare and Medicaid Services data, in 1990, annual per-person health spending averaged $2,835 in 1990, or $5,864 when adjusted for inflation. By 2024, per-person annual spending averaged $15,474.

In short, Americans have less left in their paychecks after paying for essentials like housing, food and healthcare. In many cases, consumers are increasingly prioritizing financial stability rather than planning for an early retirement.

Coast FIRE vs. traditional FIRE

Several variations of the FIRE movement exist. The traditional FIRE strategy focuses on building a large portfolio that can fully fund your retirement early, requiring you to save aggressively and potentially change your lifestyle to reflect your early retirement goals.

The Coast FIRE strategy takes a more moderate approach to save enough money early, so your investment portfolio can compound and support your retirement. Once you've amassed enough savings, you might continue to work to cover your living expenses, but early retirement isn't usually the goal. Since you won't be withdrawing from your investment portfolio early, the Coast FIRE strategy may be a more conservative option because it doesn't rely on withdrawing from investments decades before traditional retirement.

If you choose to pursue the Barista FIRE strategy, you'll work to build your savings and ultimately quit your traditional job. From there, you'll combine part-time work with your savings. Many people pursuing Barista FIRE choose to reduce their expenses so part-time income is enough to cover their living costs. Given the availability of freelance and gig work, this strategy may be a solid option for some, but you'll need to consider the limitations and expenses of securing health insurance without full-time employment.

How much money do you need to make work optional?

The amount of money that you'll need to make work optional will depend on everything from your lifestyle to your location and age.

Many individuals use the rule of 25 to determine how much they’ll need in investments to be able to retire. A commonly cited guideline suggests accumulating investments equal to about 25 times your annual expenses. The guideline is based on the widely known 4% rule, which suggests a retiree may be able to withdraw about 4% of a diversified portfolio annually, though there's no guarantee it will work in every market or retirement scenario.

Following the rule of 25, if you make $100,000 a year, you would need approximately $2,500,000 in investments to make working optional. In that situation, the guideline would suggest an initial annual withdrawal of about $100,000.

Emergency savings and retirement assets play a role, too. It's advisable to have at least three to six months of your living expenses in emergency savings. Your retirement assets may play a role, too. In addition to building up 401(k)s and Roth IRAs, consider how other assets, like Health Savings Accounts and rental properties, might support you financially once you no longer work.

Identifying the right balance of assets and the ideal amount of money you need to retire can be tricky, so consider consulting with a financial advisor.

Use the Bankrate tool below to connect with a financial professional who can help you tailor a strategy to reach your retirement goals:

Why many people keep working after reaching financial independence

Becoming financially independent and having the option to retire may sound appealing, but many financially independent individuals choose to continue working.

That's because some individuals enjoy their careers and find their work fulfilling. Some want the social engagement that comes with a career, while others may prefer having the additional income that they're able to generate.

Even if you choose to continue working, having the option to retire on your own terms can be a reassuring milestone.

Is financial independence realistic for average earners?

While reaching financial independence may take longer for average earners, many people can make meaningful progress through consistent saving, investing and keeping expenses under control.

To achieve financial independence, you may need to start early on in your career, and you'll need to be willing to live modestly. Focus on making consistent contributions to your retirement accounts and accumulating emergency savings in a high-yield savings account where your money can earn maximum interest.

Taking steps to increase your income will also help. Look for promotions and overtime opportunities, and consider taking on a side hustle where you can put your skills to work to earn extra money.

Perhaps most importantly, make a budget and stick to it. Your budget may help you identify ways you can cut spending and save money. By consistently living below your means, you can put your money to work for you and lay the pathway toward financial independence.

Financial independence can mean more than retirement

Becoming financially independent doesn't necessarily mean you'll retire early. Instead, it gives you the freedom to decide if, when and how you want to work. Rather than focusing on reaching a specific retirement age, financial independence offers greater flexibility, security and peace of mind — benefits that can be just as motivating as the prospect of early retirement.

Related Content

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Chances are, you've been with the same bank for years. After all, it's easier to stick with the checking account you have now than to switch to a new one. But every once in a while, it's worth looking at what else is out there.

Even if you're mostly satisfied with your current bank, you may find that a different one better fits your needs, whether with lower fees, higher interest rates, superior in-person services, or more-attractive premium account packages that layer on the perks as your wealth grows. Or you may choose to stick with your current institution for everyday banking and open a savings account or certificate of deposit at an online bank or credit union, taking advantage of high yields on your extra cash.

You'll find plenty of great options to consider here. With the help of LendingTree, which collects deposit-account information, we've analyzed interest rates, fees, balance requirements and other features of accounts at national banks, credit unions, online banks and regional banks, and we've named winners in each of those categories. We've also highlighted two institutions that may be strong choices for customers in each of four profiles: Retirees, high-net-worth clients, travelers and families with kids.

For regional banks, we chose one winner in each of four areas: The Northeast, the Midwest, the South and the West. Interest rates change frequently, so before you commit to any of these accounts, check the current yield. Yields and other terms listed here are as of early July.

Regional banks have between $10 billion and $100 billion in assets and serve specific areas. As a result, they often have more-personalized customer service than you may find with a national bank, and they often reinvest money into the community.

Best in the Northeast: ConnectOne Bank

Where it is: More than 60 locations across New York, New Jersey and South Florida.

Totally Free Checking is, as the name implies, free of monthly fees. It's a simple account, but it allows customers to send money via Zelle. Simply Better Checking also charges no monthly fee, and it reimburses up to $10 monthly in out-of-network ATM fees if you use direct deposit and maintain a $500 average daily balance.

Consumer Interest Checking yields 1.15% on balances of $1,000 or more, and it reimburses up to $10 a month in ATM surcharges if you use direct deposit and have an average daily balance of $1,000. (By keeping your balance at $1,000 or more, you'll also skip the $10 monthly fee.)

Among ConnectOne's savings options, Connect Money Market has a 2% yield, or 2.1% for balances above $25,000. It requires a $1,000 minimum opening deposit, and you need to maintain an average daily balance of at least $5,000 to avoid the $10 monthly fee. Connection Plus Savings offers a 3% yield on balances of at least $2,500, and the CDs come with a relatively low deposit requirement of $500. The four-month penalty-free certificate pays 4%.

Best in the Midwest: Old National Bank

Where it is: About 350 locations in Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, North Dakota, Tennessee and Wisconsin.

Old National has four popular checking-account options, including one for students and another for customers 50 and older. ONB Everyday Checking is the basic account for everyday needs, and a recent promotion offered a $600 bonus for signing up and making $12,000 in direct deposits in the first four months. The account comes with a $6.95 monthly fee, but you can get it waived with $500 in monthly direct deposits, a daily balance of $500, a $1,500 daily balance across all qualifying accounts with Old National, or 15 or more debit card transactions during the statement cycle.

ONB Preferred Checking offers free standard checks, and the bank won't charge you for the first five monthly transactions at out-of-network ATMs (but you may pay fees to the ATM operator). Preferred Checking has a $15 monthly charge, but it goes to zero if you have a daily balance of $5,000 in the account or $25,000 across all eligible accounts.

Old National offers a variety of savings options, including a savings account for kids. Among CDs, one with a four-month maturity recently had a 4% yield, with a $500 minimum deposit requirement.

Best in the South: FirstBank

Where it is: About 90 branches across Tennessee, Kentucky, Alabama, Georgia and North Carolina.

Essential Checking includes the basics for no monthly fee, while the free FirstRewards Checking pays a yield of 1.51% on balances up to $25,000 (0.55% on the portion of the balance higher than that) if you meet certain monthly requirements: making 10 debit card purchases, having one qualifying transfer into or out of the account, and receiving e-statements. The account also refunds out-of-network ATM fees.

Swipe Smart Checking, another free account, may make sense for people opening their first account or students who primarily use a debit card (the account doesn't offer paper checks). Other checking accounts include USA Checking for Seniors, for those 62 and older, and Interesting Checking ($8 monthly fee if your balance falls below $1,000), offering a yield of 0.41% on balances of $1,000 to $24,999, 0.45% on balances of $25,000 to $49,999, and 0.5% on higher balances.

For savers, FirstBank's options include FirstUp Savings, yielding 3.82% on up to $25,000. The bank waives the $5 monthly fee if you have a minimum balance of $50. The six- and 30-month CDs ($500 minimum deposit) yield 3.8%, and the Consumer Fed Funds Money Market account recently paid 1.46% on balances up to $99,999, and 2.93% on higher balances (you avoid the $10 service fee if you have an Essential Checking account or keep at least $100,000 in the money market account).

Best in the West: WaFd Bank

Where it is: More than 200 branches across Arizona, California, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington.

Free Checking is WaFd's basic checking account, and Rewards Checking is an elevated version that comes with a $6 monthly fee in exchange for perks such as a discount of 5 cents per gallon on gas at Shell stations, cell phone insurance, free access to the Greenlight program for managing money with kids, and a credit-monitoring service.

Premium Rewards Checking has a $9 monthly fee but comes with more benefits, including dark-web monitoring, 24/7 roadside assistance and telehealth services. Interest Checking offers those benefits plus a yield as high as 0.25% (on balances of $250,000 or more). It waives the $12 monthly fee if you have a $5,000 average daily balance or $50,000 across eligible accounts with WaFd.

WaFd's Savings account, yielding 0.1% on balances of at least $100, is free for minors; otherwise, you can avoid the $3 monthly fee by maintaining a balance of at least $100. Start Savings offers a 5% yield on a balance up to $500, 2.47% on the portion of the balance between $500 and $1,000, and 0.1% on larger amounts. (To open this account, you must have a WaFd checking account.)

If you're looking for better yields on big balances, check out the money market accounts, such as the High Yield Money Market (yielding as much as 2% on $500,000 or more) and CDs. Recently, a certificate with a seven- or 13-month maturity yielded 4% ($1,000 minimum deposit).

Use the Bankrate tool below to connect with a financial professional who can help you build a strategy to reach your personal finance goals:

Methodology

With data from LendingTree, which collects deposit-account information, as well as from financial institutions and other sources, we evaluated national banks, credit unions, online banks (including online accounts from brokerage firms) and regional banks. We reviewed checking accounts, savings accounts, money market deposit accounts and certificates of deposit.

We looked at features including interest rates; minimum deposit and balance requirements; monthly maintenance fees and the ease of waiving those fees; ATM benefits, such as waived or reimbursed fees for out-of-network withdrawals; free or discounted benefits, such as personal checks, cashier's checks, paper statements and overdraft-protection transfers; overdraft fees; and online and mobile banking features, such as the availability of peer-to-peer payment services. Yields and other data listed in the article are as of early July.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

More Best Banks

• Best National Banks
• Best Credit Unions
• Best Online Banks
• Best Banks for Retirees
• Best Banks for High-Net-Worth People
• Best Banks for Travelers
• Best Banks for Families with Kids

Chances are, you've been with the same bank for years. After all, it's easier to stick with the checking account you have now than to switch to a new one. But every once in a while, it's worth looking at what else is out there.

Even if you're mostly satisfied with your current bank, you may find that a different one better fits your needs, whether with lower fees, higher interest rates, superior in-person services, or more-attractive premium account packages that layer on the perks as your wealth grows. Or you may choose to stick with your current institution for everyday banking and open a savings account or certificate of deposit at an online bank or credit union, taking advantage of high yields on your extra cash.

You'll find plenty of great options to consider here. With the help of LendingTree, which collects deposit-account information, we've analyzed interest rates, fees, balance requirements and other features of accounts at national banks, credit unions, online banks and regional banks, and we've named winners in each of those categories. We've also highlighted two institutions that may be strong choices for customers in each of four profiles: Retirees, high-net-worth clients, travelers and families with kids.

These institutions offer specialized accounts for young people as they learn the ropes of spending and saving, as well as tools for parents to help manage and monitor the accounts.

Interest rates change frequently, so before you commit to any of these accounts, check the current yield. Yields and other terms listed here are as of early July.

Bank of America

Where it is: About 3,600 branches in 38 states and Washington, D.C. (Rates and terms are for customers in Charlotte, N.C.)

For families who want to take their kids to a local branch to learn about banking, Bank of America is a good bet, with locations in most states. And it offers a couple of its Advantage accounts with families in mind; both have no monthly maintenance fee for those younger than 25 and charge no overdraft fees.

The parent-owned SafeBalance for Family Banking checking account, designed for elementary and middle-school children, lets your kids use a debit card, but you can monitor their spending, get alerts when they make purchases, and lock and unlock the debit card. Children 6 and older can log in to their account online to view balances and monitor transactions, but they can't deposit or transfer money.

Teens and young adults can use the SafeBalance Banking checking account, which parents co-own. Starting at age 16, a teen can become the sole owner of the account. Account holders can make deposits and transfer money online, and those 13 and older can send and receive money with Zelle.

For account owners younger than 25, Advantage Savings charges no monthly fee. It yields 0.04%.

Capital One

Where it is: About 250 branches in a handful of eastern and southern states and Washington, D.C.

Children 8 and older can jointly own Capital One's online MONEY Teen Checking account with their parents. The account has no monthly maintenance fee or minimum deposit requirement, and it offers a yield of 0.1%.

Kids get a debit card, which parents can lock or unlock, and you can monitor their transactions with your own account login. You can make transfers into the MONEY account from your own checking account, regardless of whether your account is with Capital One or another institution.

Capital One also offers the no-fee, no-minimum Kids Savings Account, with a 2.5% yield. You can open multiple accounts for various savings goals.

Planning for retirement while raising a family isn't easy. A financial advisor can help you balance today's expenses with tomorrow's goals.

Use the Bankrate tool below to connect with a financial professional and get started:

Methodology

With data from LendingTree, which collects deposit-account information, as well as from financial institutions and other sources, we evaluated national banks, credit unions, online banks (including online accounts from brokerage firms) and regional banks. We reviewed checking accounts, savings accounts, money market deposit accounts and certificates of deposit.

We looked at features including interest rates; minimum deposit and balance requirements; monthly maintenance fees and the ease of waiving those fees; ATM benefits, such as waived or reimbursed fees for out-of-network withdrawals; free or discounted benefits, such as personal checks, cashier's checks, paper statements and overdraft-protection transfers; overdraft fees; and online and mobile banking features, such as the availability of peer-to-peer payment services. Yields and other data listed in the article are as of early July.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

More Best Banks

• Best National Banks
• Best Credit Unions
• Best Online Banks
• Best Regional Banks
• Best Banks for Retirees
• Best Banks for High-Net-Worth People
• Best Banks for Travelers

Each week in our Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter editor, answers questions on topics submitted by readers. This week, she's looking at four tax questions from readers on the taxation of I bonds in various situations. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

1. Buying and owning I bonds

Question: I am thinking about buying I bonds for the first time. I heard that holders of I bonds get generous tax breaks. What are the tax consequences of owning these bonds?

Joy Taylor: I bond buyers have a choice when they acquire the savings bonds. They can pay federal income tax each year on the interest earned or defer the tax bill to the end. Most people choose the latter. They report the interest income on their Form 1040 for the year the bonds mature (generally, 30 years) or when they're cashed in, whichever comes first.

Deferring tax on the full amount of accrued interest for up to 30 years may sound like a great idea until you get the tax bill for three decades' worth of interest. Also, taking the tax hit all at once can push you into a higher federal income tax bracket, making the tax bill even more expensive than it needed to be.

Interest earned on I bonds is exempt from state and local taxation.

2. Gifting an I bond you own

Question: I own about 50 I bonds that will begin to mature in 2030. I elected to defer taxation of the bonds' accrued interest until maturity. I am considering giving some of the I bonds to my grandchildren before they mature. If I do this, can I avoid paying federal income tax on the deferred interest?

Joy Taylor: Nope, this will not work taxwise. Making a gift of an I bond before maturity will accelerate taxation of the interest income. Giving away bonds you already own to someone else doesn't get you off the hook with the federal government for owing tax on previously untaxed interest. Even if the bonds are reissued in the gift recipient's name, you're still taxed on all that interest in the year of the gift.

3. I bonds used for education

Question: I have owned I bonds for many years. I heard that if I cash in the bonds and use the bond proceeds for higher education for my children, then I won’t have to pay tax on the interest when I cash them in. Is this true?

Joy Taylor: It depends on whether you meet all of the rules. One way to avoid paying federal income tax on accrued I bond interest is to cash in the bonds on or before the maturity date and use the proceeds to help pay for college or other higher education expenses for you, your spouse or your dependent. Note that there are lots of hurdles to jump over to be able to take advantage of this tax perk. Here are some of them:

• You must have purchased the bonds after 1989 when you were at least 24 years old.
• The bonds must be in your name only.
• The bonds must be redeemed to pay for undergraduate, graduate or vocational school tuition and fees for you, your spouse, or your dependent (grandparents cannot use this tax break to help pay for their grandchild’s college tuition unless the grandparents can, on their Form 1040, claim the grandkid as a dependent).
• Room-and-board costs aren’t eligible for the exclusion.
• The exclusion is subject to strict income limits. For 2026, it begins to phase out at modified adjusted gross income (MAGI) of more than $152,650 for joint filers and completely phases out at MAGI of $182,650. For all other filers, the phase-out range for 2026 is $101,800 - $116,800. These figures are adjusted for inflation each year, so they would be higher for 2027 and so forth. MAGI for this purpose starts with the AGI on line 11 of your Form 1040 (figured without taking into account any I-bond interest exclusion). Then you add back any tax breaks from working abroad, the exclusion for employer-provided adoption assistance and any deductions for student loan interest.

If the proceeds from all I bonds cashed in during the year exceed the qualified education expenses that you pay for the year, the amount of I bond interest you can exclude is reduced proportionally. You would use IRS Form 8815 to compute your MAGI and the amount of any I-bond interest exclusion that you would be entitled to.

4. Inherited I bonds

Question: I inherited I bonds this year from my father, who recently passed away. It is my understanding that my dad elected to defer being taxed each year on the I bonds during his lifetime. Do I have to report all the accrued, deferred interest on my federal tax return?

Joy Taylor: It depends. The executor of a decedent's estate can choose to include all pre-death interest earned on the bonds on the decedent's final income tax return. If this is done, the beneficiary reports only postdeath interest on Form 1040 for the year the bonds mature or are redeemed, whichever comes first.

If the executor doesn't include the interest income on the deceased owner's final federal income tax return, the beneficiary will owe taxes on all pre-death and post-death interest once the bond matures or is redeemed, whichever is earlier.

About Ask the Editor, Tax Edition

Subscribers of The Kiplinger Tax Letter, The Kiplinger Letter and The Kiplinger Retirement Report can ask Joy questions about tax topics. You'll find full details of how to submit questions in each publication. Subscribe to The Kiplinger Tax Letter, The Kiplinger Letter or The Kiplinger Retirement Report.

We have already received many questions from readers on topics related to tax changes in the One Big Beautiful Bill, retirement accounts and more. We will continue to answer these in future Ask the Editor roundups. So keep those questions coming!

Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our editors and experts, in this Q&A series, are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not, and is not intended to, constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial or tax advisor regarding any questions you may have in relation to the matters discussed in this article.

More Reader Questions Answered

• All Ask the Editor Q&As
• Ask the Editor: Will I be Audited by the IRS?
• Ask the Editor: Tax Basis in Inherited Property
• Ask the Editor: Estimated Tax Payments and Withholding
• Ask the Editor: 10-Year Rule for Inherited IRAs
• Ask the Editor: Tax Questions on Roth IRA Conversions
• Ask the Editor: Tax Rules for Landlords

These days, a yield north of 4% on a safe place to park your cash is a pretty good deal. So Series I savings bonds, which are offering a 4.26% composite rate on newly issued bonds, are worth a look. And because their interest rate adjusts based on inflation, they're especially useful if you want to hedge against rising prices. In April, consumer prices rose at an annual rate of 3.8%, the highest level in nearly three years.

At TreasuryDirect.gov, you can purchase I bonds for a minimum of $25, with an annual limit of $10,000 per person. Backed by the full faith and credit of the U.S. government, I bonds offer an interest rate that has two components: A fixed rate that lasts the life of the bond and an inflation rate that resets every six months based on changes in the consumer price index. Together, they form the composite rate.

Each May 1 and November 1, the Treasury Department sets a new fixed rate and inflation rate that apply to bonds issued in the following six months. (The inflation rate also applies to older bonds when they reach their six-month adjustment date.) The 4.26% composite rate for I bonds purchased May through October of this year includes a 0.9% fixed rate. I bonds earn interest monthly, and interest is compounded (in other words, added to the principal) semiannually.

A 4.26% yield is better than the rate you can get on most other low-risk places to put your money, such as savings accounts and money market deposit accounts. But you can't cash out an I bond until you've held it for 12 months. And if you redeem it within five years, you forfeit the last three months of interest. So these bonds are best used for longer-term savings.

An I bond reaches maturity after 30 years, when it stops collecting interest. The interest earnings are exempt from state and local income tax, although you usually owe federal income tax. You can pay tax on the interest each year or defer it until you redeem your bonds. Although most people choose the latter, reporting the interest every year can be a smart choice if you'd rather avoid one large tax bill down the road.

What to do with older bonds

If you bought I bonds in 2022, when surging inflation resulted in a record-high composite rate of 9.62% on bonds purchased from May through October of that year, you may be thinking about how long to hold on to them. They have a 0% fixed rate, and their composite rate for the six-month earning period starting between May and October of this year is 3.34%.

If you don't need the cash right away, there's no rush to redeem the bonds, says David Enna, founder of Tipswatch.com, a website that tracks I bonds. Although you could cash them in now and use the money to buy new I bonds with a higher fixed rate, consider whether it's worth the early-redemption penalty of three months' interest, he says. And even after the five-year mark, when the penalty no longer applies, keeping the bonds until they mature isn't a bad idea. They'll continue to benefit from compounding interest.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Raising financially responsible children means integrating financial education as early as possible.

From helping them save money in their piggy bank in the early years to budgeting larger purchases as they grow older, parents are integral to their children's financial success.

Still, saving for them continues to prove challenging. The cost to raise a child in the United States from birth to age 18 now averages more than $300,000 and is expected to increase.

As prices rise, it is more important to understand the savings options available to support your child's future.

In December 2025, a new form of savings account, 530A Accounts, more commonly known as Trump Accounts, was announced to help parents save for their children's future in a tax-advantaged way.

I'm a CFP® professional, and as more information has emerged about these accounts, my clients have asked questions about the specifics of this investment vehicle and how it fits within their current planning strategies. Here's what I am telling them.

What is a Trump Account?

It's important to understand that these new accounts aren't a replacement for other savings or retirement accounts, such as IRAs and 529 plans, but an additional strategy to complement your current financial plan.

Historically, helping a minor save for retirement has been accomplished in a Uniform Transfer to Minor Act (UTMA) account or a 529 college savings account. Each has benefits and drawbacks.

An UTMA account can help you save for a child's future, but the funds don't become available until the age of majority, which is determined by state law

A 529 is a great vehicle to save for college, but it's limited to that need — otherwise, taxes and penalties apply

While these accounts address the needs of children in their adolescence, there's been little discussion about starting early on their retirement savings. The introduction of the Trump Account addresses this gap but also comes with its own benefits and drawbacks.

What are the benefits and drawbacks of a Trump Account?

Let's start with the good news. Anyone can contribute to a Trump Account on behalf of a beneficiary under 18, including the beneficiary themselves. These contributions are made with after-tax dollars and grow tax-deferred until withdrawn.

Employers can also make tax-free contributions to a Trump Account, up to $2,500 per year.

Contributions are limited to $5,000 per year, per beneficiary and are indexed for inflation. The government might elect to issue a $1,000 grant to help kickstart the account.

Assets in a Trump Account are considered the beneficiary's funds and aren't available to creditors, and the Treasury Department has selected Bank of New York to hold these accounts with the help of broker-dealer Robinhood to develop the new Trump Account app.

There are, however, two distinct limitations to Trump Accounts:

Applicants must have a current U.S.-based address, so parents who live abroad aren't eligible to apply

The seed-money program is limited to children born from January 1, 2025, to December 31, 2028, who are U.S. citizens and have a Social Security number. Money in a Trump Account must be invested in a high-risk U.S. equity index, as opposed to a mix of equities and bonds or a lifecycle fund.

How are Trump Accounts used?

These accounts have strict parameters, chiefly that no withdrawals are permitted before the beneficiary reaches age 18.

Once the beneficiary reaches age 18, their Trump Account is converted to a traditional IRA account and is subject to the same withdrawal rules: Tax-free contributions, appreciation and earnings are taxed as ordinary income.

Withdrawals before age 59½ are subject to a 10% penalty unless one of the following exceptions applies:

• First-time home purchase
• Birth or adoption expenses
• Qualified higher education expense
• Death
• Disability
• Terminal illness
• Health insurance expenses if unemployed
• Some medical expenses

These accounts are also subject to future tax law changes; it might be possible to convert the traditional IRA to a Roth IRA at little to no tax at age 18. If the beneficiary dies during the growth period before turning 18, the account terminates. The income is taxable to "the recipient or to the deceased beneficiary's estate."

Wealthy families might consider these accounts an "extra bucket" after their core planning. Given contribution caps and restrictions, the accounts are best positioned as a supplemental planning tool alongside 529 plans, trusts and retirement vehicles.

Additional questions and answers

How do you get started with a Trump Account? Getting started appears straightforward. You can submit an application at www.trumpaccounts.gov and complete IRS Form 4547. You'll be contacted when it's time to activate your account after the program goes live.

Will Trump Accounts supercharge your children's retirement planning? No. They're simply another long-term savings vehicle that you can set and forget that provides more for your child when they're ready.

Will Trump Accounts work for all families? No, the small pilot program and geographic considerations will initially exclude a large portion of the population, although the overall approach could serve as a smart model that kickstarts retirement planning from birth and shifts the investing landscape for decades to come.

Only time will tell.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Do you have a plan for how you'll spend your money in retirement? If not, join the club. Many retirees wing it when it comes to withdrawing their hard-earned savings.

But that's a big mistake, says Jean Chatzky, best-selling author of The Forever Paycheck and founder of HerMoney. It's the biggest mistake retirees can make.

"The lack of a concrete plan actually prevents them from living their best retirement," Chatzky tells Kiplinger. "They are not living as well as they could." If you overspend without a plan, you could face a retirement shortfall. If you underspend, you won't get to fulfill your retirement goals.

Reluctance to spend among retirees

Underspending is a common problem among retirees, despite large nest eggs built on a decade-long bull market. By the end of 2024, Fidelity Investments reported that baby boomers made up 41% of all 401(k) millionaires, while Generation X (ages 45 to 60) accounted for 57%.

Yet, despite healthy balances, many are wary of spending. A recent Corebridge Financial survey revealed that less than one-third of retirees feel comfortable spending their savings, with most noting that the prospect causes stress or anxiety. While Chatzky emphasizes that a detailed strategy can alleviate many of those feelings, just 14% of retirees report having a plan to manage their required minimum distributions.

"There are a number of decumulation strategies, but I'm a believer that covering your fixed costs with some sort of paycheck, some sort of guaranteed income, is likely to enable people to live better with less stress," Chatzky says.

That doesn't mean all your money should be in a guaranteed investment product such as an annuity, bonds or Treasuries, but locking some of it in a "forever paycheck is really a smart move for most people," she says.

Preretirees need a plan, too

If you're a pre-retiree, Chatzky says the biggest mistake you can make in the run-up to retirement is not having a plan.

• Do you want to downsize or age in place?
• Will you earn money or are you completely exiting the workforce?
• What about your spouse? Is he or she retiring with you?
• How do you plan to spend your free time?

You need answers to all that and more ahead of time if you want a successful retirement, says Chatzky.

"I'm always baffled by the number of couples who have very, very different retirement visions from one another," says Chatzky. "They get to the point and realize they are not on the same page at all."

Just as with buying a house or having a baby, you can't plan out your withdrawals until you know what your lifestyle looks like and how much it will cost.

Help is out there

When it comes to planning, Chatzky encourages everyone to consider hiring a financial adviser. A financial planner can map out a plan for how to spend your money in retirement or determine how much you need to save.

Chatzky said that while some people think hiring a financial planner means paying fees forever, or think they don't have enough money to need one, both notions are dated and wrong.

You can hire a financial adviser to create a plan you execute yourself, you can hire a planner to review a plan you created, or have someone do it all for you, says Chatzky.

"The whole financial planning field has become democratized in a way that I truly think there are planning services available to fit everyone," she says.

Editor's note: This article is part of an ongoing series in which we ask influential personal finance figures to share their opinion on the biggest retirement mistake you can make. Other articles feature Suze Orman, Dave Ramsey, Grant Cardone and Ramit Sethi.

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Is your high-yield savings account costing you money? With inflation at 4.20%, your money is losing value unless it's in an account that earns at least a rate that keeps pace with inflation.

The bad news is that many savings accounts, including high-yield savings accounts and CDs, are currently not outpacing inflation, and since the Federal Reserve is not raising interest rates, that's not likely to change very quickly.

There is good news. First, if there's a concrete end to the war in Iran, inflation could be at its peak, per David Payne of The Kiplinger Letter, meaning that you could regain purchasing power as inflation slows. Second, it takes some digging, but there are some savings accounts that earn rates to keep you on pace or ahead of inflation.

I'll start by showing you why not shopping around for better high-yield savings account rates erodes your purchasing power, and we'll find the savings account outpacing inflation. Finally, I'll outline three steps to get you back on track towards achieving your savings goals.

The savings strategy costing you money

I understand the appeal of keeping your cash in the same place. However, most savings accounts (including high-yield) or CDs don't earn rates outpacing inflation currently. It means if you're still using these accounts, you're losing purchasing power.

This is why it's important to pivot as economic circumstances change.

How much does inflation eat into your savings? If you have a high-yield savings account with $50,000 in it earning 3.50% APY, while inflation is at 4.20%, you'd effectively lose $350 a year in purchasing power by keeping it in that account.

That's why even if your high-yield savings account was doing well before, you want to re-evaluate it to find better options.

The savings solution that keeps you on pace with inflation

I review savings accounts weekly and haven't found many that keep pace with current inflation, aside from this account from Newtek Bank:

What I like about it is that it has retained higher rates even amid Fed rate cuts and inflation. It's also easy to set up an account; you don't have monthly fees, and if inflation cools and eventually lowers, your cash will have more purchasing power.

If you're looking for any savings accounts outpacing inflation, I found one more option for you.

Are there any savings accounts outpacing inflation?

While the high-yield savings account from Newtek Bank will be the best fit for cash access, CDs also offer exceptional rates. The only caveat is that you must keep your money in one until the term expires, as CDs have early-termination fees.

With inflation at 4.20%, the only CDs currently outpacing inflation are jumbo options. The best jumbo CD rates are 4.35%, but you'll need at least $50,000 to $100,000 on deposit to open one with many banks.

The good news is that maturity windows are only a year at most, allowing you to earn thousands effortlessly, while keeping ahead of rising prices.

Use this Bankrate tool to compare options fast:

The one thing to consider is that CDs have steep early-termination fees. For jumbo CDs, this could be months of earned interest, costing you hundreds to potentially thousands of dollars. Only do this approach if you're confident you won't need the money in the interim.

Meanwhile, if you're struggling to hit your savings goals, let's outline some strategies to help you get back on course.

What to try: 3 steps to maximize your savings yield

1. Audit your current APY: If you have a high-yield savings account earning less than 4.20%, you're losing ground with rising inflation. Instead, look at Newtek Bank or a jumbo CD to increase your purchasing power.
2. Designate a purpose: By setting specific savings goals, you give your cash purpose and direction.
3. Know when to shift: Once you reach your savings goals, you'll want to devote more money to paying off high-interest debt or invest it, where you could earn returns much higher than inflation.

Ultimately, where you store your cash now matters more than ever due to rising inflation. Choosing a flexible option, such as a high-yield savings account with Newtek Bank or a jumbo CD if you don't need access to your money right away, allows your cash to retain more of its purchasing power.

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At its July meeting, the Federal Reserve voted to pause interest rates in the 3.50% to 3.75% range yet again. But the split decision saw three voting members vote to raise rates. This has many experts anticipating a rate hike as soon as September.

With inflation hovering at 3.5% and many savings accounts barely keeping pace, where is the best place to stash the cash you don't need right now?

If you don't want it to lose purchasing power amid rising inflation but you also don't want to risk exposing it to the market by investing it, a certificate of deposit (CD) account is one of your best options.

But how do you choose the right term length? That really comes down to what the Federal Reserve's next move is. While a 5-year CD was your best bet in the past, with Fed rates still above average while inflation was ticking downward, the uncertainty in today's economy makes those longer-term CDs less attractive.

With inflation expected to remain elevated and another Fed rate hike still possible later this year, a short-term CD may be your best option. It lets you lock in today's rates while keeping enough flexibility to move your money if interest rates or market conditions change.

Why a short-term CD is your best after the fed meeting

Like high-yield savings accounts, CD rates generally move in the same direction as Federal Reserve policy. The difference is that a CD locks in a fixed rate for the entire term, while savings account rates can rise or fall at any time.

With many short and long-term CDs offering around 4% right now, locking in those above-average rates for as long as possible was a great idea when inflation was trending downward. But now that inflation is back above 4% and only a few savings accounts are beating it, a short-term CD, with a term of, say, six or so months, might be a better bet.

This allows you to lock in higher rates for a few months while you wait to see what happens with inflation and what kind of signals the Federal Reserve puts out about where interest rates might land by the end of the year.

If the Federal Reserve raises rates in response to stubbornly high inflation, you'll have the opportunity to lock in those new higher rates after the term is up. If inflation, instead, starts falling again, you can move your cash after those few months to a longer-term CD to lock in these rates for longer.

With that in mind, use the tool below to find the top CD rates available today:

Economic signs to watch to anticipate the future of interest rates

After stashing your cash in a short term CD, you can keep an eye on the economy in the next few months while you wait for it to mature. That way, when it does mature, you'll have a good idea of where to move your cash next to maximize your yields.

• Watch for clues as to how Kevin Warsh will change the Fed. Warsh has historically been a proponent of keeping rates higher rather than risking inflation. But some analysts speculate that he might be more likely to give in to pressure from President Donald Trump to cut rates. Keep tabs on what he says in upcoming meetings to get a sense of which way he might lean in the future.
• Keep up with the monthly CPI reports. The consumer price index released every month by the Bureau of Labor Statistics not only gives you a broad picture of how your own costs are changing, but it's an important measure of inflation tracked by the Federal Reserve. If inflation keeps going up, the Fed is likely to either keep rates paused or hike them further. If inflation slows, rate cuts might be in the future.
• Check the latest jobs reports. In addition to inflation, the Federal Reserve also closely watches employment data, including unemployment rates and wage levels, when setting its monetary policy.
• Track the 10-year Treasury yield. Especially for longer-term savings accounts, such as your CD, rates can be influenced by yields on multiyear Treasury bonds. This is also an important economic indicator to watch if you might be buying a house soon, as the 10-year Treasury yield also influences mortgage rates.

Even if you don't want to track economic indicators that closely for the rest of the year, you can stash your cash in a short term CD now and set a reminder to check in on what's going on in the market in the weeks before it matures.

From there, you can decide whether to move your cash into another short-term CD or lock in rates for longer by opting for a multiyear CD.

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What is the best way to save money for children?

I get this question quite a bit from new and existing clients alike. It usually gets brought up by parents, but sometimes it comes from aunts, uncles, grandparents and other guardians.

The answer, as it is to so many financial questions, is: It depends on the financial goals and wishes of the saver.

While it can be hard to determine what a newborn will be interested in at age 18, opening pathways with a nest egg is a good start. Some of the most common account types to save for children:

• 529 plans
• Roth IRAs
• Uniform Gifts to Minors Act (UGMA) accounts
• Coverdell Education Savings Accounts (ESAs)

Each have a different set of benefits, depending on your priorities.

529 plans

529s are tax-advantaged savings vehicles for guardians to save for higher education. Depending on where you live, your state might offer a specific tax benefit for savings efforts.

Some states offer a tax benefit for both in-state 529 plans and plans from other states so you'll need to confirm what regulations apply to you.

Similarly, some states also recapture the benefit if the money is used for noneducation purposes. As you're considering what choice to make, one important piece of the puzzle is confirming your state tax benefits with 529 plans.

With rising higher education costs, 529 plans are becoming more impactful. The passage of the Secure Act 2.0 expanded options for those funds by allowing the rollover of funds to a Roth IRA and a change in beneficiary.

Roth IRA rollover

After an account has been open for 15 years, money within a 529 can be repurposed as Roth contributions, as long as the funds are at least five years old.

For example, if you have $10,000 in a 529 and contributed another $5,000 during year 15, that deposit must remain in the 529 account for five years before it can be moved to a Roth IRA. The initial $10,000 can be transferred during year 15.

While a minor can't sign Roth IRA account paperwork, adults can open a custodial or guardian Roth on their behalf.

I also often hear clients say, "I want to open a Roth IRA for my child." If the minor has a W-2 for wages earned, you can.

I once worked with a grandmother who opened one for a granddaughter who had a minimum wage summer job as a pool lifeguard. Once a year, the two would come in to contribute the amount in the granddaughter's W-2 to a Roth, typically a few thousand dollars.

While the granddaughter spent the money she earned on other things, her grandmother would gift her an equal amount in her Roth contribution. At 18, the grandchild was able to re-register the account in her own name.

Nonqualified distributions

While a 529 account is ideally used for education expenses, nonqualified distributions might also be an option for noneducational uses for 529 funds.

Even if used for other purposes, principal contributions can be withdrawn without tax or penalty, although earnings are charged a 10% penalty to the IRS.

If the account is started for a newborn and the nonqualified withdrawal is completed on or by their 18th birthday, the owner can still enjoy 18 years of state tax benefits and tax-deferred growth.

I sometimes get savers who put their personal experiences first when making decisions for their children's savings. I've heard many times, "I did not have a 529 to pay for higher education, and I made it work."

Other times, the saver might be concerned that a 529 could influence a child's decision to pursue higher education.

In those cases, Uniform Transfers to Minors (UTMA) and Uniform Gifts to Minors Act (UGMA) custodial accounts might be better alternatives.

UTMA and UGMA accounts

As an alternative, these types of accounts let you save for a child without the expectation that the funds will be used for education.

Instead, deposits are an irrevocable gift to the child, and the adult custodian manages investments until the child reaches the age of maturity.

Coverdell Education Savings Account (ESA)

One of the final ways to save for a child's education is with a Coverdell ESA. During my 15-plus years in the industry, I've seen few of these.

In my opinion, 529 accounts are often preferable, given their flexibility. ESAs have low contribution limits, and the assets must be used by age 30.

High-income earners are also ineligible for these accounts and others can only contribute to the account until the child's 18th birthday.

So many choices — what should you do?

I have children and reviewed the same options for my family. For our circumstances, I found the best options to be an UTMA and 529.

The benefits of the 529 shine the most in my opinion, and I have automatic monthly contributions to a 529 for each of my children. As they become comfortable making their own financial decisions, I'm onboard with Roth contributions for unused 529 assets or even cashing out the accounts to give the cash to my children.

I can even transfer an unused 529 for one child to another, without tax or penalty while replacing the funds with personal savings.

For the UTMA account, I deposit any gifts of cash my children receive for holidays or birthdays. To encourage good financial values, I let them decide how much to save.

For those trying to pick the best option for their family, whichever path you choose, you're working toward a goal. We don't know what the future holds, but rest assured you helped your loved one in some way with your savings efforts.

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Cash accounts are having a moment, thanks to the decent interest rates they now pay, at long last. But selecting one can be a daunting task given the profusion of choices —from money market accounts to money market mutual funds to a small clutch of newly hatched money market exchange-traded funds.

The term money market has become a catch-all description for a variety of interest-bearing products that follow different rules. The offerings also vary in yield, ease of accessibility and, to a small degree, levels of safety. “In some respects, money market has become more of a marketing term than a technical term,” says Ted Rossman of Bankrate, a website that evaluates bank products. “There's a lot of confusion about this.”

What's an investor to do? We'll lay out the various types of money market investments, all of which invest in high-quality, short-term debt and are appropriate places to stash cash for short- to medium-term goals, as well as what factors to consider before you choose one. We're holding off on including money market ETFs in this discussion, however, because most are less than a year old.

First, an explanation about money market interest rates. They fluctuate, for starters, depending on market conditions and how their holdings perform. And you will see a variety of interest rates quoted. Each one offers an idea of how much your cash can earn over a 12-month period, but they're not exactly the same.

Mutual fund money markets are required to report a seven-day SEC yield, which shows what the fund would pay in interest over a one-year period if rates of the past week stayed the same. It's net of fees, so investors can compare one money market mutual fund to another.

Money market accounts quote an annual percentage yield (APY), and that reflects compound interest — the return you earn on principal plus accumulated interest. That's different from a straight-up interest rate, which you also may see quoted.

They're FDIC insured up to $250,000 if the bank fails. Monthly fees may apply, too, unless you maintain a certain balance.

Quontic Bank's money market account, for example, requires $100 to open. There's no maintenance fee. And the bank pays the same interest — 3.8% currently — whether you have $1 or $150,000 in the account. It comes with check-writing abilities and a free debit card, too. “This is really a pretty standard bank account that's being marketed as a money market,” Bankrate's Rossman says.

Money market accounts. You open these accounts at a bank or credit union. They offer easy access and may yield more than an ordinary savings account. You may have to fork over a certain amount, $100 or even $5,000, to open one. But most allow you to pull some or all of your money at any time. Some accounts even offer check-writing abilities.

Use this Bankrate tool to find and compare savings/money market accounts quickly:

Money market funds. You buy these funds through your broker. There are three types, distinguished largely by what kind of debt they hold.

Government money market funds invest in short-term Treasuries and other government securities. The biggest such fund, Fidelity Government Money Market Fund (SPAXX), yields 3.3%.

By contrast, municipal money market funds invest in state and local government debt, which pay interest that is exempt from federal taxes. American Century Tax-Free Money Market Fund (BNTXX) boasts a 3.1% yield, or a taxable-equivalent yield of 4.1% for investors in the 24% federal income tax bracket.

Some muni money funds focus on debt in a single state, giving residents of those states additional tax benefits. Schwab California Municipal Money Fund (SWKXX) yields 2.4%. For California residents in the 24% federal income-tax bracket, the taxable equivalent yield is 3.7%.

Prime money market funds can hold a mix of government bonds and commercial paper — high-quality, ultra-short-term corporate debt. The largest prime fund by assets, Schwab Prime Advantage Money Investor (SWVXX), holds 20% of its assets in commercial paper. It yields 3.5%.

Generally speaking, all money market mutual funds are safe investment products, but they have some risk. These funds are designed to maintain a stable net asset value of $1 per share, for instance, but during the Global Financial Crisis, a money fund fell below that — it “broke the buck.” Regulators now require that money funds hold a chunk of their portfolio in cash reserves.

Underlying holdings in the money fund can inject some risk, too. Prime funds that hold commercial paper stakes, for instance, are a bit riskier than funds that hold only government securities. That's partly why prime funds offer a tad more yield than government money market funds.

But since the post-GFC cash-reserve rules went into effect, much of the yield advantage in prime funds has been diluted. That's why some advisers, including Brian Schaefer at Johnson Financial Group, have decided prime funds don't offer enough yield these days to justify the risk.

SIPC insurance covers money mutual funds up to $250,000 in cash if a brokerage firm fails; the insurance does not cover investment losses.

Factors to consider

Yield matters, but you may want to consider additional features before choosing a money market product.

Accessibility. Whether you choose a money account or a money mutual fund may boil down to where you plan to hold your cash, whether in a bank — which provides arguably easier accessibility, if you're moving money between household accounts—or at your brokerage firm. Either way, make sure you can withdraw any amount of money, anytime you want. Some may cap monthly withdrawals.

And if you opt to keep your cash at your brokerage firm, don't assume the default cash account earns a decent yield. At Schwab, the default fund for idle cash in brokerage accounts earns just 0.01%. That's fine for money you plan to spend or invest in the next few days or weeks. Otherwise, consider moving it to a money market mutual fund or account to boost your yield.

Tax consequences. The tax treatment on interest earned in money markets can help you narrow your choices. Muni money market funds, for instance, are a good choice for high-income earners holding cash in taxable accounts.

Interest income in other types of money accounts and funds is subject to ordinary federal income tax, though most government fund payouts are exempt from state and local income taxes. The exception is government repurchase agreements, or repos, which generate income that's subject to federal, state and local taxes, says Noreen Brown, an adviser at Summit Financial in New Jersey.

Fees. Whether it's a monthly maintenance fee in a money market account or an annual expense ratio in a money market fund, investors should look at expenses when picking money market products, says Brown. Monthly maintenance fees for money accounts range between $0 and $25. Expense ratios of the 10 biggest money market mutual funds range from 0.11% to just under 1%.

Truth be told, however, depending on how much you're stashing away, expenses may not matter that much. “If you're investing $10,000, who cares?” says Pete Crane, who runs a data firm that tracks money market products. “A million dollars? Yeah, you should care.”

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Summer often brings higher discretionary spending. A weekend trip to the beach, extra outings with friends or that must-have ice cream machine can quickly eat into your budget. But summer can also be an ideal time to build savings without making major lifestyle changes.

Because the holiday season is still months away, even small weekly contributions can add up over time. Whether you're building a holiday fund, boosting your emergency savings or paying down debt, setting aside a little money each week can make a difference.

The goal of a summer savings challenge isn't to eliminate fun. It's about being intentional with a portion of your spending while still enjoying the season. Building your savings doesn't have to be complicated. Follow these five steps to make the most of the summer months and put yourself in a stronger financial position by fall.

Step 1: Choose a savings goal

Before you start saving, decide what success looks like. Giving every dollar a job can help you stay committed when summer spending temptations arise. Here are several ways you could use the money you save:

• Holiday spending fund: Use the summer to save up for your holiday spending. Knowing you have funds available can make it easier to buy holiday gifts or plan special celebrations.
• Emergency savings: Experts recommend having at least three months of living expenses in savings, though given the uncertain economy, having six months of expenses saved up may give you greater peace of mind.
• Credit card debt payoff: Consider using your summer savings to pay off some or all of your credit card debt. Once you’ve paid off that debt, you can continue to save the money that was going to your monthly credit card payments.
• Back-to-school expenses: If you have kids who will be heading to school or college in the fall, saving throughout the summer can make it easier to stock up on essential supplies.
• Travel fund: Consider adding your savings to your travel fund. You might use that money for family vacations, or save up for that once-in-a-lifetime trip that you’ve always wanted to take.

Once you've chosen a savings goal, make sure your money is working as hard as you are. Parking your funds in a high-yield savings account can help your balance grow faster.

Use the tool below, powered by Bankrate, to compare some of today's top savings account options.

Step 2: Pause one recurring expense

Once you've identified your savings goal, look for an easy way to free up money in your budget.

Go through your bank account or credit card statements to see where your money is going each month. Chances are you'll find at least one expense you can live without for a few months. Redirecting that money to savings can help you make steady progress toward your goal without dramatically changing your lifestyle.

You might be able to pause one of these common expenses:

• Streaming service
• Weekly takeout habit
• Convenience-store purchases
• Subscription box
• Daily coffee shop visits
• Food delivery orders
• Unused gym memberships or coaching subscriptions
• Impulse online shopping

Choose one realistic cutback that you can make temporarily while you focus on saving money.

Step 3: Redirect rewards and unexpected cash

Cutting expenses isn't the only way to save more money this summer. You can also accelerate your progress by redirecting unexpected cash and everyday perks into your savings account. Because this money isn't part of your regular budget, you may be less likely to miss it. Consider whether you'll receive any of these sources of extra cash this summer:

• Cashback rewards: It's easy to treat cash-back rewards like free spending money. If you're carrying credit card debt, consider applying those rewards directly to your balance to reduce interest charges. Otherwise, transfer the rewards to your savings account and put them toward your summer savings goal.
• Credit card statement credits: Statement credits can lower your monthly bill and free up cash in your budget. Rather than spending those savings elsewhere, transfer the equivalent amount into a high-yield savings account. If a credit creates a negative balance, your card issuer may allow you to request a refund check.
• Cell phone perks and discounts: Many wireless plans include free streaming subscriptions, discounted services or other perks. If you're no longer paying for those benefits out of pocket, move the money you would have spent into savings instead.
• Rebates and loyalty rewards: Whether it's a manufacturer rebate, store reward or loyalty-program payout, treat these bonuses as found money and deposit them directly into your savings account.
• Tax refunds or side-hustle income: Consider earmarking all or part of a tax refund, freelance income or earnings from a side gig for your savings goal. Since this money isn't part of your regular paycheck, it can be easier to save without affecting your day-to-day budget.

Direct those perks and windfalls into the account you're using for the summer savings challenge. Because the money never sits in your checking account, you'll be less tempted to spend it. Over time, those extra dollars can add up faster than you might expect, and watching your balance grow can help keep you motivated.

Step 4: Automate your savings through Labor Day

Set a savings goal and decide how much you can realistically set aside from each paycheck throughout the summer. Then, schedule automatic transfers from your checking account to the account you're using for the challenge. Setting those transfers to continue through Labor Day can help keep your savings on track.

Consider giving the account a name that reflects your goal, such as "Holiday Fund," "Emergency Fund" or "Vacation Fund." Seeing that name each time you check your balance can serve as a reminder of what you're working toward and help keep you motivated.

Automating your savings removes the need to make a decision every payday. Instead of relying on willpower, you'll build saving into your routine, making it easier to stay consistent and reach your goal.

*Based on saving consistently from mid-summer through Thanksgiving.

Step 5: Track your progress and stay motivated

Staying motivated is often easier when you can see your progress. Consider using a budgeting app such as Monarch, Quicken Simplifi or YNAB to track your savings goal throughout the summer. If you prefer a low-tech approach, create a simple chart or tracker on paper and update it each week.

If you're saving toward a shared goal, such as a vacation, holiday spending fund or emergency fund, check in regularly with your spouse or partner about your progress. Seeing your balance grow can reinforce positive habits and make it easier to stay committed to the challenge.

Remember, the goal isn't to eliminate summer fun. It's to be more intentional with your spending while consistently setting money aside for a larger financial goal. By Labor Day, those small weekly contributions could leave you with hundreds — or even thousands — of extra dollars heading into the fall.

A summer savings challenge doesn't require a complete budget overhaul. Instead, focus on consistently setting aside even a small amount of money each week. Over time, those contributions can help reduce financial stress and put you in a stronger position heading into the fall and holiday season.

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The Bureau of Labor Statistics released its August CPI report, showing inflation rose 0.4% for the month, bringing the current inflation rate to 3.4%, well above the Federal Reserve's 2% target.

The escalating war in Iran has spiked gas prices. AAA reported that diesel exceeded $6 per gallon for the first time in history, which will bring higher prices to the shelves of your favorite stores.

It isn't all doom and gloom, though. I'll show you where to earn the most based on your savings goals, what the inflation number means for Federal Reserve policy and other steps you should consider.

These are the savings accounts outpacing inflation

If you are looking to build an emergency fund or have a short-term savings goal where you need cash access, I would consider a high-yield savings account, but look carefully at the rates, as many don't outpace current inflation.

Newtek Bank offers a savings account earning 4.20% APY with no monthly fees. This will keep you ahead of inflation in the interim.

The benefit is that you can build your savings without tying your money up as you would with a CD. Plus, if price pressures continue to build, the Federal Reserve could raise interest rates, which could also push rates on high-yield savings accounts higher.

Will this inflation news change Fed policy?

The Fed meets on September 15 and 16, with CME Group FedWatch projecting an 87% probability of a rate hike.

Cleveland Federal Reserve President Beth Hammack believes changes must come if inflation rises again. The Fed Chair Kevin Warsh also echoed a similar sentiment at the Jackson Hole Economic Symposium last month.

And this might be the trend we see play out. "Full normalization of energy costs could take well into 2027 because of extensive damage to energy infrastructure in the Middle East," writes David Payne, staff economist and reporter for The Kiplinger Letter, in the Kiplinger inflation outlook.

"Eventually, food prices will start rising, as one-third of the world’s fertilizer supply is produced in the Persian Gulf region." So, while the temporary drop in overall inflation is great, it might not last.

Are CDs a smart move right now?

Yes, they can be. I like short-term CDs right now because they can help you earn a rate higher than inflation. Plus, you can pivot to other investments when the CD matures if economic conditions change.

If inflation continues to rise, the Federal Reserve could respond by raising interest rates to help cool price pressures. That could push yields on CDs and other savings products higher. With a short-term CD, you won't have your money locked up for long, potentially giving you an opportunity to take advantage of higher rates when your CD matures.

However, a long-term CD can work, too, if you're looking for a less risky place to keep some of your cash as you approach retirement. CDs offer a fixed return, so your rate won't change during the term once you open one.

Here are some of the best CD rates I found:

What should you do amid rising inflation?

First, make sure you have an emergency savings fund with at least six months of expenses in a high-yield savings account. I suggest using Newtek Bank since it outpaces inflation.

Once you've built your emergency savings, consider whether some of the money you won't need in the near term could be invested for longer-term goals. Stocks have historically offered the potential for returns that outpace inflation over the long run, though they also come with the risk of losses.

Where you put that money will depend on your goals, timeline and tolerance for risk. Kiplinger Personal Finance Magazine recently looked at where to find top yields for the rest of 2026. You can also explore our picks for the best Vanguard ETFs and highest-yielding dividend stocks in the S&P 500.

And if you need help with where to invest your money, use the Bankrate tool below to find a reputable adviser to assist you, as they can create a plan based on your finances, goals and risk tolerance:

Related content

• Kiplinger Inflation Outlook: Inflation is Stabilizing, but at a Higher Level
• Maximize Your Savings: The Best Jumbo CD Rates to Lock In Now
• Best High-Yield Savings Accounts

Question: Some of my friends have been laid off, prompting my husband and me to take saving money more seriously. How much should we save in the off chance one or both of us lose our jobs?

Answer: Preparing for worst-case scenarios is a smart move as part of financial planning. The more you're able to save, the less you'll have to incur debt to pay for living expenses if you or your husband face a job loss or another financial hardship arises.

So, saving any money is a good start. The key is to determine how much you really need in an emergency fund. I'll show you how to determine this savings goal as well as strategies to reach it quickly.

How much do I really need in an emergency fund?

It's going to depend on several factors, such as:

• How much do you need for essential expenses?
• Do both spouses work full-time?
• Are you self-employed?
• Does one spouse make significantly more than the other?
• The job market/forecast/location of the occupation you're currently in

To begin, review the last six months of bank and credit card statements to calculate your average monthly essential expenses. Using several months of data can help smooth out seasonal spikes in spending and provide a more realistic estimate of what you'll need if your income is disrupted.

For items like streaming, dining out and entertainment, I would only factor in minimal amounts since you'll want to maximize every cent you earn to account for a job loss.

Once you've calculated your average monthly essential expenses, I generally recommend saving enough to cover at least six months of expenses. If both spouses work full-time and earn similar incomes, three months may be sufficient.

Meanwhile, if you're self-employed or in a highly specialized field, aim for nine months to a year of savings. The goal here is to create enough of a cushion where your changed circumstances don't result in you incurring debt.

With this target in mind, I'll show you some strategies that will help you get there quickly.

Conquer your savings goal quickly. Here's how

The first is where you choose to store your cash. I like online banks because they offer higher returns with minimal fees. The best high-yield savings accounts can earn you up to 4.20% APY, keeping you ahead of rising inflation while helping you reach your savings goals quicker.

I also like them because it's easy to add money, and you can keep that money separate from your checking account. This can prevent impulse purchases while also giving you easy access to keep building your savings.

Use this tool, powered by Bankrate, to find and compare options quickly:

How much can you earn with a high-yield savings account? Using one of the top savings account offers we've found, Newtek Bank, a saver who starts with $5,000 and contributes $250 each month could grow their balance to about $8,273 after one year at 4.20% APY. That's roughly $273 in interest earnings, in addition to the $8,000 deposited over the course of the year.

Now, to reach these goals quickly, you'll first want to take stock of your finances. I like budgeting apps because they let me view multiple bank accounts in one hub and identify spending patterns I can adjust. Doing this first helps you maximize savings.

Some popular options include You Need A Budget (YNAB), which focuses on assigning every dollar a job, Monarch Money, which offers customizable budgeting and net-worth tracking tools, and Quicken Simplifi, which helps users monitor spending, savings and financial goals in one place. The best app is the one you'll use consistently, so consider testing a few options to see which fits your budgeting style.

Next, set up automatic transfers. This serves several purposes: First, you'll have steady contributions going into your account, so your balance builds. This gives you momentum and can incentivize you to save more if you receive tax refunds, work bonuses, or other unexpected income. Second, it takes one less thing off your plate, and you treat the transfer as a payment in your budget.

Can I save too much?

Yes, you can save too much. While it's important to build a healthy savings safety net in case the unexpected happens, once you reach your goal, you'll want to tackle other things in your financial checklist.

If you're behind on retirement, redirect the funds normally set aside for savings into your investments. Keep in mind that, even amid market volatility, investments have historically delivered higher long-term returns than savings accounts, and the longer you stay invested, the more you can benefit from compounding.

Alternatively, if you're working toward other savings goals, such as buying a house in the next few years, use the same strategies. Open another high-yield savings account separate from your fully funded emergency account, and build your savings this way.

Ultimately, preparing for worst-case scenarios can give you peace of mind if they happen. You'll also develop sound savings habits that you can apply to other areas of your financial life. Not only can this help you reach your goals, but it also saves you money because you won't have to rely on credit cards to cover essentials until you're back on your feet.

If you'd like personalized guidance, use the tool below, powered by Bankrate, to connect with a financial professional who can help you achieve your goals:

Related content

• 6 Steps to Quickly Build Your Emergency Fund
• Best High-Yield Savings Accounts
• Is Your Emergency Fund Running Low? Here's How to Bulk It Back Up
• 7 of the Best Budgeting Apps for 2026

When interest rates fall, as they did toward the end of 2025, borrowers across the country breathe a sigh of relief.

Lower interest rates mean loans, mortgages and credit cards are less expensive and help make monthly payments easier to manage.

But while borrowers continue to benefit from lower rates, savers are facing a much different reality: Lower returns on the wealth they've built.

Why savers feel discouraged

Savers enjoyed several years of elevated interest rates following the pandemic and grew accustomed to earning more on their cash.

However, they're now feeling the effects of lower rates. A recent WalletHub survey found 56% of Americans are unhappy with the interest rates on their bank accounts, while two in five say lower rates make them feel less motivated to save.

When rates drop, the impact is felt almost immediately across various traditional savings vehicles. Returns on high-yield savings accounts, money market accounts and CDs tend to move lower, reducing how much interest savers can earn.

In many cases, rates fall below the rate of inflation, which can shrink the value of savings over time.

Once returns decline, many savers start to question whether continuing to set money aside is worth the discipline and effort. After growing accustomed to higher interest rates, lower returns feel discouraging and less rewarding.

Savers may also face reinvestment risk. This means money that once earned higher interest must now be reinvested at a lower rate, making it harder to save consistently over time.

How to stay on track

While feeling discouraged is understandable, pulling back on saving entirely can create several long-term challenges. A lack of consistent contributions can make it more difficult to build enough savings for retirement, the purchase of a home or emergencies.

When interest rates fall, however, saving shouldn't stop. It may simply require a more intentional approach. Continuing to save a fixed portion of your income will help you maintain progress, regardless of how rates change.

Instead of relying solely on interest rates, savers may need to focus more on structure and consistency.

Some may consider using a tiered approach, such as a CD ladder, to help balance flexibility and returns over time.

Others may choose to diversify beyond traditional savings accounts, or compare high-yield options to find more competitive rates.

Interest rates will continue to move, which is why a strong savings strategy shouldn't depend on short-term rate movements.

By remaining consistent and adjusting where needed, savers have a much better chance of staying on track.

Related Content

• What the Fed's Rate Pause Really Means for Your Money
• What Is the Federal Funds Rate?
• Are You Making These 3 Savings Mistakes?
• How to Make Changing Interest Rates Work for Your Retirement
• How to Ride the Waves of Interest Rates and Inflation

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Once tax season comes to an end, most families shift their focus away from planning. This year, that may be a mistake.

A new federally backed savings account for children, known as a Trump Account, is set to launch this summer, offering a $1,000 government-funded starting balance and tax-deferred growth. For families already thinking about 529 plans and long-term wealth transfer, the question isn't whether to pay attention — it's how to use this new tool effectively.

For families with children and grandchildren under age 18, the first step to participate can be taken now by filling out IRS Form 4547 on the official Trump Accounts site. While simple in execution, this decision has the potential to become a meaningful building block within a broader, long-term financial plan.

How Trump Accounts work

Created under the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, Trump Accounts introduce a new way to build wealth for minors. Structurally similar to a traditional IRA, the accounts offer tax-deferred growth, meaning contributions are made with after-tax dollars, but investment gains compound without annual taxation.

From a planning perspective, this creates another avenue to extend tax-efficient growth across generations.

What makes the program particularly compelling is the built-in starting point. Eligible children — those born between January 1, 2025, and December 21, 2028, who are U.S. citizens with valid Social Security numbers — receive a $1,000 federal seed contribution.

While modest on its own, when viewed through the lens of long-term planning, that initial investment represents something more powerful: Time in the market.

The importance of starting early cannot be overstated. When capital is invested early and allowed to compound, even relatively small contributions can grow meaningfully.

For example, a family contributing $5,000 annually through age 18, alongside the $1,000 federal seed and a 6% return, could accumulate roughly $190,000 by adulthood — and more than $2 million by retirement if left untouched. While hypothetical, the scenario underscores how early contributions, not just large ones, drive long-term outcomes.

Trump Accounts are intentionally structured to reinforce that discipline. Investments are limited to low-cost U.S. equity index funds or ETFs, with expense ratios that do not exceed 0.10%.

Contributions are capped at $5,000 annually (indexed for inflation), and assets are locked until age 18. Together, these features create a framework designed for consistency and long-term growth without the burden of short-term decision-making.

Eligibility is broad, which allows for coordinated family planning. Parents or legal guardians typically open the account, but grandparents and others can contribute. This creates an opportunity to align gifting strategies across generations and to begin introducing younger family members to long-term investing in a tangible way.

Trump Accounts and 529 plans

For many families, the question is how Trump Accounts fit alongside existing strategies, particularly 529 plans. In our view, this is not an either-or decision. Each serves a distinct purpose.

For many families, 529 plans remain an effective tool for education-specific savings, offering tax-free growth when used for qualified expenses. Trump Accounts, by contrast, are not limited to education. They provide flexibility beyond college, allowing assets to continue compounding into adulthood.

This means they can be used to support broader financial independence, while also instilling a lifelong habit of regular, incremental investment over time.

Used together, these tools can help families take a more comprehensive approach — funding education needs while also building long-term wealth. The addition of the $1,000 federal contribution further strengthens the case for early participation, particularly when integrated into an overall plan.

How to get started

Getting started is straightforward. While it was possible to include IRS Form 4547 with your 2025 tax return, it is now available on the Trump Accounts website, allowing you to complete the process online if you missed the opportunity.

Ultimately, Trump Accounts are not just a new savings vehicle – they are a new planning consideration. For families focused on generational wealth, they offer a structured way to start earlier, invest consistently and align financial decisions with long-term intent.

For families focused on building wealth for future generations, the real advantage of Trump Accounts isn't just tax deferral — it's time.

Starting earlier, even with modest amounts, can meaningfully change long-term outcomes. This is a rare opportunity to get a head start on putting that principle into practice.

Related Content

• The GOP Trump Account for Savings: Your Funding Starts Soon
• Should You Start a 'Trump Account' for Your Child?
• Trump Accounts Are a Great Start, But They Could Be Better
• How the One Big Beautiful Bill Act Will Reshape 529 Plans
• What Financial Lessons Are Your Kids Learning by Watching You? 5 Ways to Help Them Develop Healthy Money Habits

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Like many moms, my mother has always been our family's CFO. I grew up watching her fill in Quicken workbooks, write and document checks and keep us all accountable for our own spending.

As an adult, I recognize now how valuable it was for my sisters and me to watch our mother manage money. It's only in more recent history that it's become socially acceptable for women to manage finances, even within the family, and many women have become financially disadvantaged because a husband mismanaged funds and kept them in the dark.

It was especially valuable watching her because she had good wisdom and tools to impart. As we celebrate Mother's Day, I'm sharing some of the key money lessons I learned from her.

1. Balance your own books

I'm not exaggerating that some of my oldest memories are of my mother tapping away at a big desktop computer, filling in spreadsheets. She wasn't formally an accountant, but she acted like one for our family, making sure that our spending didn't exceed what was coming in and that she had an eye on where every dollar was going.

There's a reason why most financial advice starts with "track your spending." You can't know how to trim your budget if you don't know what makes up your budget. On a broad level, "balancing your own budget" means you can understand it better and thus manage it better.

On a more minute, practical level, it also means that your money is literally in the right place. You avoid overdrawing an account, for example, if you know that a bill is coming up on a certain date to be drawn from a certain checking account, so you know to hold cash there. As another example, you might see that you're holding more cash than you need, so you can set some aside for investing.

2. Keep your files organized

But all that tracking and monitoring can be rendered useless if your files are not organized. As I was growing up, my mother was meticulous about her filing. She always had folders on hand to add to her filing cabinets so she could easily find whatever document she needed when it became relevant.

There's a mix of files you need to keep organized. There are financial documents like bank statements, investment records including savings bonds (especially from the pre-digital-age), and tax records you need to keep. There are practical items like house deeds, car registrations and insurance agreements. Then there are the family documents: Birth and death certificates, Social Security cards, and health records, especially as you get older or face a serious illness.

Each of these can and should be stored differently. Some are better kept in a home safe and some things can be kept in a safe deposit box, while others can fairly safely be in a filing cabinet, and still others, like certain estate planning documents, should be kept in an accessible space in case of emergency. The point is, you do have to do the work of organizing your documents, and I'm frequently grateful my mother did.

Read more: How to Store Your Financial Documents the Right Way

3. Look at multiple options, and negotiate where you can

My mother is the daughter of a contractor, and as such, she's comfortable talking to contractors and other home professionals. I regularly watched her ask questions and press for information, both to make sure she understood what they proposed and to ensure she was paying an appropriate price.

From that, I learned that it's not impolite to ask: Ask for clarification, for discounts with certain concessions (like making a lump-sum payment or putting off a project till a less busy season), for second and third opinions to compare pricing. As she tells my sisters and me, the worst thing someone can do if you ask for something is say "no," which isn't that harsh an outcome.

Since I became a homeowner, I've been working on channeling her voice, recognizing that I don't have to accept every contractor proposal and that, sometimes, there is room for negotiation.

4. Stay informed and up-to-date on the financial landscape

The way my mom operates, you'd think she was a Kiplinger editor (and not just a longtime reader). She is constantly reading up on tools and trends, making sure she's making the smartest possible money decisions — and recognizing you need to adapt.

Some examples:

• She bought one of the first hybrid car models to hit the market while the wider world was still questioning the concept. That trusty Prius stayed in the family a good 15 years and saved us a ridiculous amount on gas.
• She downloaded the Robinhood app before I did because she was so curious about how it worked.
• When I-bonds were having a heyday in the wake of the pandemic, she invested in them and urged her daughters to do the same.
• And my ego is still recovering from her telling me how much better a rate she was getting in a money market account she'd found than I was getting in my high-yield savings account last fall.

Now, this doesn't mean changing your financial strategy every week, it just means staying aware of what's out there and how it could improve your finances.

5. Empower yourself to manage your finances

I'm grateful to my mother for these and many other lessons I've learned from her. It's very possible she was faking it till she made it and learning along the way, but what I saw was a confidence in managing money. She didn't shy away from making decisions, and she educated herself to take care of our family finances.

From that, I understood that I could do the same. It's easy to let someone else take the wheel of your money and to assume finance is too complicated and let your cash languish in a basic checking account. But thanks to her, I grew up feeling empowered to direct my financial destiny, and I'm sure there are many other people out there feeling the same about their moms.

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For the fourth year, we're pleased to present the winners of our annual Readers' Choice Awards. In a survey we conducted on Kiplinger.com in January and February, more than 4,200 readers rated the financial products and services they use in 13 categories, from credit cards and banks to brokers, wealth managers and annuity providers. The results here offer valuable insight into the everyday experiences that Kiplinger readers have with their financial providers.

Respondents made their judgments on such criteria as their interactions with customer service, the likelihood they would recommend the product or service to others, and their overall satisfaction with it. They also had the option to leave comments about their providers, and we have shared some of them here (remarks may be lightly edited for length and clarity).

For each category, we've listed an overall winner that earned the highest total score as well as other providers that earned above-average ratings for the various criteria that readers assessed. Our thanks to all of you who participated in the survey.

Kiplinger Readers' Choice Awards: Internet Banks

Generally, internet banks offer higher savings yields and lower fees than their brick-and-mortar counterparts, and customers can manage their accounts online or through a mobile app. Survey respondents judged these institutions on customer service, how likely they would be to recommend the bank to others and how satisfied they are overall with the bank.

Overall Winner: Charles Schwab Bank

Outstanding for:

• Customer service
• Most recommended
• Overall satisfaction

Charles Schwab Bank, which has claimed the number-one spot among internet banks in three of the four years we've run the Readers' Choice Awards, is particularly attractive for customers who want to streamline their banking and investment services. "Costs nothing and works well,” says one reader. "Also nice that everything is connected to your investment accounts."

Schwab's free checking account is built for investors, allowing you to transfer money instantly between it and your Schwab brokerage account. There are no foreign-transaction charges when you use your debit card overseas, and you get unlimited refunds of out-of-network ATM surcharges worldwide.

Account holders also get free standard checks and 24/7 customer support. "Absolutely the best in customer service, hands down!" a reader remarks. "I can't see anyone beating them in convenience and service!"

Highly-rated providers

Ally Bank

Outstanding for:

• Customer service
• Most recommended
• Overall satisfaction

Many Kiplinger readers are pleased with Ally Bank's solid customer service and low-cost accounts. "Best online banking available. Comprehensive account choices. Prompt, accurate transactions. Live, knowledgeable and thorough customer service agents," says one respondent.

With Ally's free checking account, you have access to 75,000 fee-free ATMs nationwide, and you're reimbursed up to $10 monthly in out-of-network surcharges.

Ally also offers a savings account, money market deposit account and certificates of deposit with no minimum balances required. The one-year High Yield CD recently featured a 3.7% rate, and the savings and money market accounts offered a 3.2% yield.

Capital One

Outstanding for:

• Customer service
• Most recommended
• Overall satisfaction

Although Capital One still has brick-and-mortar branches, it also operates a popular internet bank. One reader summed up its capabilities this way: "App is easy to use and functional. Love the ability to see all accounts, including credit cards, in one place. Easy to deposit checks virtually and transfer money between accounts. Bill pay is also effective."

Capital One's 360 Checking requires no monthly fee or minimum balance, and customers have access to more than 70,000 fee-free ATMs nationwide. The 360 Performance Savings account recently yielded 3.2%, and CD rates were as high as 4.1%, for an 11-month term, with no minimum deposit required.

USAA

Outstanding for: Customer service

USAA offers a full suite of financial products, including a free checking account that reimburses up to $10 in monthly out-of-network ATM surcharges, savings accounts, and CDs, recently yielding as much as 2.25%. USAA also offers a youth checking and savings account, which is fee-free, and they come with parental controls and the flexibility to transition to an adult account at age 18.

USAA membership is open to military servicemembers and veterans, as well as the spouses and children USAA members.

Kiplinger Readers' Choice Awards Categories

• Readers' Choice Full-Service Brokers*
• Readers' Choice Wealth Management
• Readers' Choice Cash Back Credit Cards*
• Readers' Choice Airline Credit Card Rewards Programs*
• Readers' Choice National Banks*
• Readers' Choice Internet Banks*
• Readers' Choice Auto Insurance Companies
• Readers' Choice Homeowners Insurance Companies
• Readers' Choice Annuity Providers*
• Readers' Choice Tax Software*
• Readers' Choice Peer-to-Peer Payment Services
• Readers' Choice Awards Travel Rewards Credit Cards*

How Readers Chose the Winners

Kiplinger readers were invited to take the Readers' Choice Awards survey on Kiplinger.com between January 22 and February 19, 2026. The survey asked respondents to choose the financial product or service that they most frequently use in 13 categories: brokerage firms, wealth managers, IRA providers, cash-back credit cards, travel rewards credit cards, airline credit card rewards programs, national banks, internet banks, annuity providers, homeowners insurers, auto insurers, tax software and peer-to-peer payment services.

We asked readers to rate each provider they selected on a scale of one to 10 based on a few criteria. In many categories, readers rated the strength of customer service, how likely they would be to recommend the product or service to others, and how satisfied they are overall with the provider. In some categories, we included more nuanced criteria. With wealth management firms, we asked respondents to rate the trustworthiness of a firm's advisers and the quality of its financial advice and retirement-planning services. For IRA providers, respondents assessed the mix of investment choices available to them. For peer-to-peer payment apps and tax software, respondents evaluated ease of use, and for auto and home insurance companies, readers judged the competitiveness of rates and strength of the claims experience.

We calculated an average (mean) score for each criterion with each provider. We also calculated an overall mean score for all providers for each criterion we asked readers to judge. We compared individual provider mean scores with the overall mean, and the three highest-scoring providers that had a score above the overall mean won an "outstanding" accolade; in cases of a tie, more than three providers are named, and if fewer than three qualifying providers achieved an above-average score, only those providers are named "outstanding." In each category, providers are generally listed in descending order by the number of criteria for which they received the "outstanding" designation — so a product or company that is deemed "outstanding" in three areas, for example, is listed before a provider with one or two "outstanding" awards.

To choose an overall winner in each category, we added together the mean scores for each criterion rated for each product or service. The provider with the highest total score in each category took the prize for overall winner.

*Because of a technical issue during 2026 survey data collection, some providers that readers evaluated in certain categories, marked with an asterisk, were ranked using patterns from 2025 consumer survey data.Affected were three of 18 brokerage firms, six of 20 cash-back credit cards, two of 15 travel rewards credit cards, one of 13 airline credit card rewards programs, three of 33 banks, two of 14 annuity providers, and one of eight tax-software products. All other categories fully reflect 2026 data. All results represent actual Kiplinger reader feedback.