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 June meeting, the Federal Reserve voted to pause interest rates in the 3.50% to 3.75% range yet again. This latest in a series of pauses has left savers in limbo.

With inflation topping 4% and most 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 value 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 the outlook for both inflation and future Fed rate moves uncertain, your best bet right now is a short-term CD so you can lock in today's rate while still having flexibility to shift your cash somewhere else depending on where the market goes.

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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If you don't think your purchasing power is the same as it was even a few months ago, you're not alone. The Bureau of Labor Statistics released its May CPI report, showing inflation rose 0.5% for the month, bringing the annual inflation rate to 4.20%, the highest it's been in three years.

Fuel costs remain the primary catalyst for these trends. As the conflict in Iran persists, expensive energy continues to inflate the price of everything from airfare to groceries.

What's more, if you're trying to shelter your cash from rising prices, it's hard to find many savings accounts outpacing the current rate. I'll show you the few savings accounts I found that will keep you ahead of inflation, what the inflation number means for Federal Reserve policy and other steps you should consider.

These are the savings accounts outpacing inflation

Letting your cash sit in a savings account that doesn't outpace inflation means you're losing money every day, and these days, it's nearly impossible to find a savings account that does outpace inflation.

Your best option is a jumbo CD, the only CD type offering rates that outpace inflation at its current level. As its name implies, a jumbo CD requires a larger deposit, usually $50,000 to $100,000. The good news is that many of the maturity windows fall within six months to a year, giving you time to earn thousands of dollars effortlessly, with the flexibility to pivot if prices continue to rise.

With this in mind, here are two accounts to consider, both requiring $100,000 minimum deposits, and both with rates higher than the current inflation rate:

• ECFU Financial: 6-month CD at 4.35%
• ECFU Financial: 1-year CD at 4.35%

Another option I would consider is 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. While it won't keep you ahead of inflation, you'll at least break even.

The benefit of this account is that you build your savings without tying your money up as you would with a jumbo CD. It makes this account perfect for those looking to build an emergency fund or to achieve short-term savings goals with cash flexibility. Plus, if inflation continues to rise, the Federal Reserve might have to look at raising rates, which would mean the rate on a high-yield savings account would also adjust upward.

Will this inflation news change Fed policy?

Not in the interim. The Fed meets on June 16-17, with the CME Group FedWatch projecting a 96% probability they'll leave rates alone.

That said, Cleveland Federal Reserve President Beth Hammack believes changes must come if inflation continues to rise. In a speech to the City Club of Cleveland on June 2, she said that, currently, monetary policy alone might not be enough to bring inflation down to the Fed's target rate of 2%.

She added that if higher inflation becomes embedded in the economy, bolder moves, such as rate hikes, might be needed to help the Fed achieve its inflation target.

And this might be the trend we see play out. Unless something changes in the Middle East, "gasoline and other fuel prices will continue rising in the coming months," writes David Payne, staff economist and reporter for The Kiplinger Letter, in the Kiplinger inflation outlook.

"Food prices will also start rising in the future, as one-third of the world's fertilizer supply is produced in the Persian Gulf region, along with 10% of aluminum, used in everything from jets to soda cans." If core inflation continues to rise, it might make the Fed consider a rate hike to help bring inflation down to its intended target.

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 in the interim since it's the only one earning the same rate as inflation.

Once you reach your savings goal, I recommend investing more of your money in the stock market, where returns might protect your cash from inflationary pressures. Kiplinger Personal Finance Magazine recently released our annual feature on where to find top yields for the rest of 2026, and you can also take a look at our picks for the best Vanguard ETFs and highest-yielding dividend stocks in the S&P 500, for more liquidity.

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

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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:

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As you approach retirement, you're likely to reallocate some of your funds to less-risky investments, especially given market volatility. One smart option to consider that can earn you a healthy return without the risk is a jumbo CD.

Jumbo CDs offer many advantages. First, you'll earn rates as high as 4.35%, keeping you ahead of rising everyday costs — March's CPI report showed inflation rose 3.3% year over year. Second, you don't have to tie up your money for a long period of time. Most jumbo CDs come with terms from six months to one year.

In turn, you can put some money in, earn thousands of dollars effortlessly, and have quick access back to your cash. Before signing up for one, let's take a look at how they work and the challenges of using one.

Jumbo CDs: Earning higher rates without the long-term commitment

As its name implies, a jumbo CD refers to the amount of money you deposit in it. Most banks require large deposits — think $50,000 to $100,000.

Because you're investing a higher amount, banks tend to reward you with higher returns than you would find on many savings accounts. Once your term expires in six months to a year, you'll have the option to renew it (some banks do this automatically) or you can close the account and invest in something else.

What's great about this approach is that you don't have to lock in your money for years at a time. If prices continue to rise, you might want to consider something with a little more risk and higher rewards to keep ahead in the future. A jumbo CD gives you the flexibility to earn a healthy return quickly, without overcommitting.

Use this Bankrate tool to compare options:

Before opening one, consider these things…

First, you must be okay parting with that money. Jumbo CDs also have early termination fees, amounting to months of earned interest.

If you need to break open the CD early, it could cost you hundreds to thousands of dollars, so only do this if your cash flow and emergency fund are in a good place.

Furthermore, it won't be a smart move if you're looking to catch up with your retirement savings. While you won't have the risk, moving money from investments (where you can earn significantly more historically) to savings could shortchange your future if you need those higher returns.

How much can I make a jumbo CD?

The other thing to consider is how much you'll gain from opening one. This can help you chart your savings progress to ensure the earnings keep you on course.

Thankfully, a jumbo CD is one of the best ways to grow your cash fast. Here are some examples of how much you can earn in a short period of time:

As this table illustrates, if you can devote $100,000 to a jumbo CD, you'll earn over $4,000 merely for opening an account. And you'll have a few other benefits too:

• If you choose a bank offering FDIC insurance, your assets are protected up to $250,000 per account holder
• In one year, you can reinvest this money in the stock market or try another investing solution
• If the Federal Reserve cuts rates during your term, it won't impact your earnings

Ultimately, the benefits of a jumbo CD make it a smart bridge investment if you're approaching retirement and want to earn a healthy return without the risk.

Just know that any earnings on CDs are taxable as ordinary income, so make sure to include this in your financial planning so you're not surprised come tax day. That aside, this is one of the best ways to keep your cash safe while growing it at a rate that outpaces rising inflation.

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Question: My wife and I were delighted to find we're getting a higher tax refund of around $10,000 this year. I think we're in a good place to use the money for a fun vacation or other splurge, but, she's worried about the future and wants to save it. What should we do?

Answer: When making significant money decisions as a couple, it's common for people to want different things. Money disagreements are signs of a healthy relationship because you're communicating.

Even if those conversations are stressful, it's a good sign. Turning attention to whether you should splurge or save, there's an easy way to figure this out. All you need to do is answer a few simple questions.

1. If you lost your job tomorrow, how long could you pay your bills?

You should have an emergency fund established to cover expenses in case of a job loss. How much do you need to save? It depends on your circumstances.

If your household relies on one spouse to cover all the earnings and expenses, you'll likely need at least six months saved. Meanwhile, if both people earn around the same amount of money, three months is a good benchmark.

Where's the best place to build your emergency fund? A high-yield savings account is a great place to start because you can transfer money from your checking account to that savings account on payday and treat that money as "don't touch." Plus, with rates as high as 4.20% APY, you'll outpace inflation.

Use this Bankrate tool to find the best high-yield savings accounts for you:

2. Are your retirement savings on track to ensure your financial security for the future?

Investing that tax refund could be a huge boon for your future self, who'll thank you, especially if you're behind on where your retirement savings should be. To demonstrate, if you took that $10,000 and placed it all in a Vanguard S&P 500 index fund, in 20 years, that return could balloon to almost $40,000, using historic returns.

Obviously, this approach comes with some risk. There's no guarantee that historic returns are indicative of future performance for index funds, and if inflation continues to rise, it can impact how much your money will be worth when you need it.

Still, hypothetically earning close to $30,000 can be a smart move that helps you catch up with your retirement savings.

3. Are you carrying high-interest debt?

The average credit card APR is 19.58%, according to Bankrate. If you have a $5,000 credit card balance and make the minimum payment with the average APR, it could take you 273 months to pay it off. That's a long time throwing your money away on interest.

If you have any high-interest debt, I recommend paying that debt off first. It'll take payment(s) off your monthly budget (which you can use to pad savings or retirement), improve your credit and help you get on the road to becoming debt-free.

There are several ways of going about this. You can do the debt snowball method, in which you pay off your lowest balance first, while making minimum payments on other debts. If the $10,000 clears all your high-interest debt, consider using it for that, provided your savings are in decent shape.

4. What if none of these apply to me?

You're in the sweet spot. In this scenario, you should devote $7,000 to $8,000 to save and use the rest to splurge. It allows you both to enjoy the windfall of your tax refund.

It's a smart way to shelter from rising inflation. With diesel prices soaring, the costs of everyday goods will rise. Earmarking a significant portion of those funds to a high-yield savings account is a smart way to offset higher prices.

You'll get to benefit from it now and later. You'll get to splurge on a home upgrade or other treat, while she gains peace of mind knowing that your future selves will thank you for saving.

Related content

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It's true what people say: If you want the most reward, you have to take the most risk. But prudent investing is about taking calculated risks, not blind ones. And after three consecutive years of hardy stock returns, it may be time to dial down the risk in your portfolio, in preparation for the eventuality of a market stumble.

Or your circumstances in life might dictate a more cautious stance, for whatever reason. De-risking is about planning ahead.

"After the risk has happened, it's too late," says Tim Steffen, director of advanced planning in the wealth management division of investment firm Baird.

In a classic sense, de-risking involves scaling back on stocks and moving into less-volatile instruments, such as bonds and cash.

Some strategists, including Liz Thomas, head of investment strategy at SoFi, don't think market conditions warrant that right now, and you might agree. Similarly, thirty-something investors, who don't need to tap their retirement savings for decades, and investors who are already conservatively positioned may not need to de-risk.

In those cases, staying the course may be the better tack — and actually avoids the risk of not meeting your goals by investing too conservatively for long-term success.

But other situations present good opportunities to shore up your portfolio by making appropriate tweaks.

We'll review some de-risking strategies for several circumstances, including temporary hurdles (your job is in jeopardy or you're nearing retirement), more lasting ones (such as a change in your comfort level with risk), and other situations.

The first steps to de-risk your portfolio

Consider some best practices in your quest for a safer portfolio. It's important to remember that de-risking doesn't mean upending your current investment plan or selling everything and moving to cash. Rather, it's about finding ways to tame the risk in your portfolio without dramatically shifting the allocation of your investments.

In some cases, no selling may be required; you simply invest any new money you're putting in the market "a little differently," says Baird's Steffen.

Start with a review of your portfolio. You should have an investment plan already in place — one centered on a diversified portfolio that holds a mix of foreign and U.S. stocks, bonds, and cash and that is aligned with your time horizon and your risk tolerance.

These days, after three good stock-market years, your portfolio might be more aggressively positioned than you'd prefer. A simple rebalancing — selling securities that have done well and buying pockets of the market that have underperformed — could be enough to lower the risk level of your portfolio. And "now is a good time to lock in some gains," says Baird's Steffen.

Next, identify any life changes or worries that may be keeping you up at night. If your cash needs, investment goals, risk tolerance or time horizon have become more challenging, some de-risking might be in order.

"Scale any shifts you make in your portfolio to the scale of the risk involved," says David Kressner, a managing adviser at Altfest Personal Wealth Management in New York City.

Finally, you may want to assess how any portfolio tweaks you're considering may affect your chances of achieving your investment goals. That’s what Cassandra Rupp, a senior wealth adviser at Vanguard, does before making any moves in her clients' portfolios.

Rupp stress tests the new portfolio in a Monte Carlo simulation, which runs through hundreds of possible market scenarios to find out how it might perform and, most importantly, how likely the altered portfolio will be to accomplish the client's investment objective.

"So, it's not just about how we might be revising the investments," says Rupp. "It's also revisiting the success rate of the new long-term plan."

Read on for ways to de-risk your portfolio in five different scenarios, including investments to consider. All returns and data are through May 26, unless noted otherwise.

Scenario 1: You're worried about a stock market bubble.

If a bubble in artificial-intelligence-related stocks concerns you, you're probably overinvested in them, says Baird's Steffen. Of course, these days, most of us are. The AI-stock-heavy tech and communications services sectors combined currently make up nearly half of the S&P 500 Index.

Diversification is the name of the game in this scenario. "Rarely does a bubble affect all things in a uniform type of way," says Kressner. For instance, in the early 2000s, when the dot-com bubble burst, a well-diversified portfolio, with exposure to non-tech sectors, small-company shares and foreign stocks, weathered the downturn well, he says.

Beef up your stakes in non-tech parts of the market with an aim to lower your tech exposure to about 25% of your overall stock portfolio.

"This is a good time to spread your money out," says Lewis Altfest, chief investment officer at Altfest Personal Wealth Management. "Tech stock valuations are kind of rich right now. And I think other parts of the market are going to do better than technology, or at least keep up with it, and with less risk," Altfest says.

Non-tech sectors to consider include healthcare and consumer staples, where investors are currently "underexposed," says SoFi's Thomas.

Our favorite diversified healthcare fund is the Fidelity Select Health Care Portfolio (FSPHX), a member of the Kiplinger 25, the list of our favorite no-load mutual funds. Manager Eddie Yoon has outpaced his competition over the past three, five, 10 and 15 years.

The Vanguard Consumer Staples Index (VCSAX) and its exchange-traded-fund twin that trades under the symbol VDC both charge just 0.09% in annual expenses and boast five-and 10-year annualized records that rank among the top decile of consumer staples funds.

Alternatively, an equal-weighted index fund, such as the Invesco S&P 500 Equal Weight ETF (RSP), can lessen overconcentration in huge tech stocks because it holds every stock in the S&P 500 in equal proportion.

Or buy funds that focus on midsize and small-cap stocks. Small caps will benefit from continued interest rate cuts; mid-cap stocks are ripe pickings for all those mergers and acquisitions deals that many expect to pick up in pace this year.

The iShares Core S&P Mid-Cap ETF (IJH) and the iShares Core S&P Small-Cap ETF (IJR) are members of the Kiplinger ETF 20, the list of our favorite exchange-traded funds, as is the aforementioned Invesco S&P 500 Equal Weight fund.

Tilting toward large-company value strategies is another way to diversify. You'd be surprised to learn, however, that many large-value funds count Nvidia (NVDA), Apple (AAPL) and Microsoft (MSFT) among their top holdings. Two that don't: Vanguard Equity Income (VEIPX) and Dodge & Cox Stock (DODGX). Both funds are members of the Kiplinger 25.

Index-fund lovers might consider Vanguard Value Index (VVIAX), which also trades as an ETF under the symbol VTV.

Explore abroad. Despite a solid performance in 2025, foreign stocks still trade at bargain prices relative to U.S. shares on multiple measures.

The Vanguard Total International Stock ETF (VXUS) tracks an index that includes nearly every publicly traded foreign stock in developed and emerging countries. The fund has climbed 33% over the past 12 months.

Altfest favors international value-oriented stock strategies these days. One such fund that catches our eye: the iShares Edge MSCI International Value Factor ETF (IVLU), which tracks an index of foreign large and midsize companies that trade at low valuations. Over the past 12 months, the fund has gained 38%. Its 10-year annualized return, 11%, isn't shabby, either. Both trailing returns outpace the MSCI EAFE Index of stocks in foreign developed countries.

Scenario 2: Your job is insecure.

Layoff fears are high these days, according to a recent survey by Zety, a website that helps job seekers write résumés and cover letters. But if you're laid off, unless you’re close to retirement age, you'll likely find work again.

So the best de-risking strategy — before the pink slip arrives — is to leave your portfolio allocation alone but focus on having enough cash to cover your costs while you're looking for new employment.

Build an emergency fund that covers at least three to six months of essential expenses — rent or mortgage, car payments, gas, food, healthcare costs, insurance and utilities. Planning for enough to cover just the basics, of course, means fewer dinners out and other such treats while you're looking for a new job.

If denying those pleasures is a downer to you, then you may need to pad your emergency fund more, says Jonathan Lee, a wealth management adviser at U.S. Bank. And bear in mind, depending on your work experience, income level and how niche-y your skill set is, it may take you longer to find a job than someone in the early stages of their career.

In that case, a six-month emergency fund makes more sense than one that covers just three months.

You should consider family-income dynamics when you're deciding how much to save in your emergency fund, too. If you're single or your family pulls in two fairly equal salaries, then a three-month fund may be sufficient. But if household income is lopsided or you rely on one income (or you and your partner work at the same place or in the same field), an emergency fund that covers closer to six months is a good goal, says U.S. Bank's Lee.

Finally, factor in psychology. For nervous Nellies, a six-month emergency fund can make sense regardless of job experience or family dynamics. Setting aside cash over a year or even two years is a reasonable goal by balancing saving for your retirement and an emergency fund at the same time.

If you're already out of work and have no emergency fund, you may have to tap other resources, such as a home-equity line of credit, if you have one.

If you must sell investments, tee up assets in a taxable account first, both to avoid an early withdrawal tax penalty if you're younger than 59½ (you can make penalty-free withdrawals of contributions from a Roth account) and to keep your tax-deferred assets growing. Aim to keep your overall allocation in place by selling proportionately across your portfolio so that your long-term investment plan remains unchanged.

Keep your emergency stash in an interest-bearing account that beats inflation (running about 3.8%). "You may not need to rely on it for years, but over the course of time, inflation can seep into your ability to afford your lifestyle as you know it," says Lee.

At last report, top yields for both high-yield savings accounts and money market bank accounts were at or above 4%. Among money market mutual funds, the Vanguard Federal Money Market Fund (VMFXX), the second-largest in the country by assets, offered 3.6%; the biggest money market mutual fund, the Fidelity Government Money Market Fund (SPAXX), paid 3.3%.

Scenario 3: You've entered the retirement danger zone.

The five years before and after you retire, a period known as the retirement danger zone, is a critical time in your investing life. A major market downturn during that stretch could shrink your portfolio just when you need to start pulling from it.

Over time, that can negatively impact your ability to outlast your nest egg. "It's called the sequence-of-returns risk," says U.S. Bank's Lee. We're living longer, too, which adds to the danger.

The best way to protect yourself against a sequence-of-returns risk is to make sure you've got enough cash on hand to cover two to three years' worth of expenses in retirement, after accounting for income from other sources, such as Social Security or a pension.

Consider putting aside enough for necessary expenses, as well as fun money, says Lee. Extremely risk-averse investors might consider holding up to five years of expenses, but three years is a good middle ground. The goal is to buy enough time to ride out a tough market, should one come along, so you aren't forced to sell investments in a down market.

Ready cash means money that's easily accessible in a high-yield savings account, money market bank account or a money market mutual fund, all of which yield roughly 3.0% to 4.0%, nationwide, at last report.

You can use this Bankrate tool to find and compare savings options fast:

Investors in the retirement danger zone should consider de-risking the medium-term portion of their investment portfolio, too. In a "bucket" approach to retirement-portfolio construction, that means holding the bucket of money you expect to tap roughly four to 10 years from now in a combination of cash and high-quality bonds and bond funds.

Our favorite actively managed intermediate-term bond funds include Baird Aggregate Bond (BAGSX), which currently yields 3.9%; Fidelity Investment Grade Bond (FBNDX), which yields 4.0%; and the Vanguard Core Bond ETF (VCRB), 4.7%.

An intermediate-term government fund we like is Vanguard Intermediate Term Treasury (VFITX), which is actively managed and yields 4.0%.

For now, short-term bond funds still offer good yields. Consider these stand-out short-term bond funds: iShares Short Duration Bond Active (NEAR), which yields 4.3% — it's a member of the Kip ETF 20 — and Vanguard Short-Term Federal (VSGBX), which currently yields 3.5%.

Lee says a small stock allocation in the medium-term bucket is not out of order, as long as the stocks are high-quality, well-established, large-cap stocks from the U.S. or developed foreign countries. "These stocks will grow over time, but they aren't all the way out on the risk spectrum," he says.

To add high-quality companies to your portfolio, take a look at these two funds. The Pacer US Cash Cows 100 ETF (COWZ) focuses on large companies with the highest free-cash-flow yield. That's free cash flow (money left over after operating expenses and spending to maintain or upgrade property and equipment) relative to a company's market value.

The fund has returned 10.5% annualized over the past five years. Notably, it gained 0.2% in 2022, a year when the S&P 500 lost 18.1%. The JPMorgan U.S. Quality Factor ETF (JQUA) turned in a solid 13.8% five-year annualized return with below-average volatility. It tracks an index that sifts for companies that meet 10 quality-oriented criteria, including measures of profitability, financial risk and earnings quality.

For exposure to high-quality foreign stocks, consider the Invesco S&P International Developed Quality ETF (IDHQ), an index fund that homes in on three fundamental ratios: return on equity (a profitability measure), accruals ratio (an earnings-quality measure) and financial-leverage ratio (a measure of financial stability and solvency). Or consider a foreign dividend-stock fund — such funds tend to offer smoother rides.

Kiplinger 25 member Janus Henderson Global Equity Income (HFQTX) sports below-average volatility and has generated a robust 6.4% yield over the past 12 months.

Ideally, you'd be making de-risking moves in a tax-sheltered account, says Christine Benz, director of financial planning and retirement at Morningstar.

"But if you're still working and contributing to those retirement accounts, think about channeling your new contributions to those safer holdings as a way to move up your allocation there," she says.

Scenario 4: Your risk tolerance is lower than you think.

It happens: You thought you could withstand a bear-market drop in your portfolio, but now you're not comfortable with it. The early 2025 tariff tantrum, when the S&P 500 dropped 19% in less than seven weeks, was a wake-up call for many investors.

If your ability to withstand stock market losses has changed, there are ways to maintain exposure to equities but pare down the volatility, or even limit potential losses — you just may have to give up some potential gains.

Defensive sectors, such as consumer staples and utility stocks, tend to be steady Eddies, in part because many sport robust dividends that can cushion any losses (or shore up slim returns).

Over the past decade, for instance, shares in companies that sell essential daily household products have been nearly 20% less volatile than the broad market. The aforementioned Vanguard Consumer Staples ETF (VDC) ranks among the top 8% of all consumer staples funds over the past three years. Utilities, meanwhile, are a classic defensive play. Consider the Invesco S&P 500 Equal Weight Utilities ETF (RSPU).

Focusing on more stable stocks may be a good move this year, says SoFi's Thomas, because it's a midterm election year, and those tend to be more volatile.

A buffered ETF uses options tied to a specific index to cushion losses to a predetermined degree in exchange for a cap on potential gains.

Buffered ETFs require some timing when you buy, because the options are set to cover a specific stretch — 12 months, for example — so optimally, you'll get in at the start of the period. Once purchased, however, they can be held indefinitely, because they roll over to a new 12-month stretch.

Buy shares in the Innovator U.S. Equity Power Buffer ETF July Series (PJUL) in late June, for instance. It protects you against the first 15% in losses in the S&P 500 between the start of July 2026 and the end of June 2027.

The cap on gains changes from one-year period to one-year period and had not been set yet at press time. The fund's cap on gains over the past 12-month period that ended in April 2026 was 13.1%, net of fees.

These funds come in many iterations. Some are tied to the performance of other indexes, including the Nasdaq Composite, as well as benchmarks for small-company stocks, emerging and developed foreign stocks, and even bonds. The reset period, also known as the outcome period, varies, too. Some buffered funds reset over three months, six months or two years, for example.

The Innovator Defined Wealth Shield ETF (BALT) offers protection against a 20% drop in the S&P 500 every three months. In its most recent quarterly stretch, which ended in March, the fund’s three-month cap on gains was 2.1% (which implies an annualized cap of more than 8% over 12 months). With its hefty buffer on losses, this fund tends to behave more like a bond investment.

Scenario 5: You fear a recession ahead.

Most economists expect slower growth but no recession in 2026. But just the fear of a recession can affect the stock market, whether one actually occurs or not, says Jim Paulsen, a former Wall Street strategist who writes the newsletter Paulsen Perspectives.

In turn, a calamity in the market could dent what’s known as the "wealth effect," causing investors to cut back on spending and delivering a blow to the economy.

Diversification is your first line of defense in a recession. Make sure your investments are appropriately spread across sectors, company size, geography and even investment style (value and growth).

A Wells Fargo Investment Institute study shows that a portfolio with a wide mix of investments outperformed the S&P 500 by an average of seven percentage points over the past several recessions.

Retune your portfolio so it's more defensive. A defensive portfolio — one that's always positioned for an economic downturn — can allow you to maintain an appropriate mix of stocks, bonds and cash, but tilting toward more conservative selections within those asset classes may provide a smoother ride, which can help investors stay the course, says Frank Maltais, a certified financial planner at Fidelity in Portland, Maine.

On the stock side, load up on high-quality names that are less economically sensitive, are low in volatility and pay dividends. In addition to funds we've already named, such as Fidelity Select Health Care, Vanguard Equity Income, Invesco S&P 500 Equal Weight Utilities and Vanguard Equity Income, we also like Capital Group Dividend Value (CGDV), which invests in stocks of established U.S. firms that generate above-average dividend yield (greater than the S&P 500).

Over the past three years, it has returned 25.4% annualized, beating 99% of its peers (large-value funds), with volatility that was a touch below average.

Go high-quality on the bond side, too, and hold short-and intermediate-term Treasuries, which offer ballast in stock-market downturns, as well as government-guaranteed mortgage bonds. You can buy Treasuries directly from the government at Treasury Direct.gov and hold to maturity.

Among funds, the iShares U.S. Treasury Bond ETF (GOVT) holds debt with short-, medium-and long-term maturities and yields 4.3%. More than 55% of the portfolio is invested in bonds that mature in one to five years. Target the short end of the yield curve with the iShares 1-3Year Treasury Bond ETF (SHY), which yields 3.9%.

If you want to tilt more toward medium-maturity debt, Vanguard Intermediate-Term Treasury (VFITX) holds a mix of bonds that mature in three to seven years. Our favorite mortgage-bond funds include the index-based Vanguard Mortgage-Backed Securities ETF (VMBS), which yields 4.1%, and the actively managed fund Vanguard GNMA (VFIIX), which yields 3.7%.

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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In today's unpredictable economic climate, finding a safe yet profitable place for your hard-earned money is more critical than ever. Two smart, but overlooked savings solutions are money market accounts (MMAs) and no-penalty CDs.

Both accounts share similarities as you earn an APY currently outpacing inflation. You'll have access to your money when you need it. Both also serve different purposes and come with tradeoffs.

The question comes down to preferences: Do you want access to your money immediately, or do you prefer to lock in a fixed rate and let it ride for a bit? I'll break down the pros and tradeoffs of each approach.

Money market accounts: Where liquidity meets strong returns

If you're concerned about tying up your money and need immediate liquidity for expenses, a money market account is a better solution. MMAs offer the returns of a high-yield savings account with the purchase abilities of a checking account.

Many money market accounts come with debit cards, and some offer check-writing capabilities. In turn, you can access your funds whenever you need them in an emergency or an unplanned expense.

Use this Bankrate tool to shop and compare rates on the top options:

Money market accounts come with some limitations

Money market accounts do have some things you'll need to consider. One, some banks require you to carry an average daily balance of a specified amount, or you could face a monthly fee.

Another is that some banks still restrict how many transactions you can make with an MMA, especially if you plan to use your debit card often. Find one that doesn't impose transaction limits, or you might find the account too limited for your purposes.

Finally, money market accounts feature variable interest rates. It means they can change at any time if the Federal Reserve cuts rates in the future or your bank decides to lower them. If this is concerning, there's another option that protects you from these variances.

No-penalty CDs: Lock in a higher rate for short-term goals

This is where a no-penalty CD can come in handy. Unlike money market or high-yield savings accounts, a CD offers a fixed interest rate. It means once you open an account, your rate remains the same through the term.

No-penalty CDs also differ from regular CDs in that you can withdraw cash when you need it. Most banks require you to hold the funds in the account for the first week or month before you can withdraw.

With rates as high as 4.00% APY, you can maximize your cash without fear of having to tie it up long-term. Use this Bankrate tool to compare and find the best CD options for your needs:

No-penalty CDs come with a few tradeoffs

A few things to note about no-penalty CDs: If you need to withdraw money, some banks will close your CD. While you won't have any early termination fees, you won't earn any interest, either, reducing your earning potential.

Your maturity window will also be shorter. Most banks offer these CDs in terms ranging from six months to a year. If you want to re-invest your cash after the maturity date, there's no guarantee you'll receive the same rate.

Unlike a money market account, you won't be able to add more money to it. It makes a no-penalty CD a more suitable option if you have a specific savings goal in mind with the cash on hand.

Finding the right savings option for your needs

The good news is that whichever option you choose, you'll gain a few benefits you won't find in the stock market. You'll earn a guaranteed return — as high as 4.00% APY for both options. If you choose an account with FDIC Insurance, it'll protect your assets up to $250,000 per account holder.

The key is knowing when to use each. To help, here are a few scenarios and recommended strategies based on priorities:

Ultimately, both options are wise ways to grow your cash safely with the flexibility to pivot if inflation continues to rise. Choosing between them comes down to your personal preferences, whether you have an emergency fund established and your cash flow.

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If you're retired or a few years away from it, you're likely considering reallocating some of your assets to less volatile options to reduce risk. Fortunately, savings accounts still offer strong returns that surpass inflation and help achieve your goals during retirement.

If you decide to transfer some money, your next step is to choose the right savings account. Various options suit different needs, from having immediate access to cash to a hands-off account that earns a fixed rate of return, regardless of Federal Reserve policies and interest rates.

To help you find the best fit, I've included several scenarios and the top options for each. Using this guide can help you find a savings account that supports your goals.

1. I want access to my cash all the time

If this is the case, you have two options: A high-yield savings account (HYSA) or a money market account. Which one is better for you? Let's break it down:

A high-yield savings account will be a smarter fit if you don't need access to your cash immediately. It works best for savers who have a dedicated emergency fund for unplanned withdrawals with another account.

The reason? Online banks offer the best rates on high-yield savings accounts, yet some of them don't offer ATM cards. That means that unless you open a checking account with the same bank, it might take a few business days to receive your money via an ACH transfer.

If you don't mind the waiting, use this Bankrate tool to find the best account for you:

Meanwhile, a money market account is best if you need occasional immediate liquidity. Money market accounts come with debit cards and check-writing privileges, making it more of a hybrid savings/checking account.

Two things to consider with money market accounts are that you won't earn as high a return as you would with HYSAs, and some banks limit the debit card transactions you can make on money market accounts monthly, so pay close attention to the terms if you go this route.

2. I'm saving my money for a specific goal

In this scenario, a certificate of deposit (CD) is a smart option. The key with CDs is finding a term that matches your savings goals. To demonstrate, if you want to start a business next year after you retire, earmarking funds in a one-year CD is a smart way to ensure you're ready to hit the ground running.

The nice thing about CDs is that they encourage you to keep your money in for the full term. If you need to break it open, you can do so, but the early termination fee will eat away at your earnings.

You can shop and find the best CD rates for your needs using this Bankrate tool:

The one thing I caution about long-term CDs is that if inflation continues to rise, it will limit your earnings. Case in point: The Iran war spiked fuel prices, which means the cost of everyday goods will also increase. A prolonged war could result in even higher fuel costs, driving up other prices and inflation further.

3. I have a large deposit and want to split it among savings accounts

For savers with deposits of $100,000 or higher, I'll always recommend exploring jumbo CDs first. They provide the highest returns among all savings options, with APYs reaching up to 4.35%. They also don't have long-term maturity dates; usually, you're looking at a commitment of six months to a year.

This makes them a flexible savings choice if you want to maximize your returns with some of your funds. However, if you need to split your deposit across multiple savings accounts for cash accessibility, there are several strategies you can use.

For example, with a $100,000 deposit, you could find a jumbo CD that only requires $50,000, placing half into that and the other half into a high-yield savings account. This method allows you to take advantage of two of the highest APYs available while maintaining liquidity and protecting some of your money from potential rate cuts.

Another option is a CD ladder. How this works is you open multiple CDs with different maturity dates, so you have cash flow while protecting your money from future rate cuts.

Ideally, you'll want a mix of short-term and long-term CDs. That way, you have cash access if you want to pivot to other investments in the future, while some of your money continues to earn higher rates.

4. I don't want to use online banks

Your comfort should matter most when choosing a savings account. You want peace of mind knowing you have access to your money when you need it, or if you're caring for an aging parent, having access to a personal banker can make all the difference with financial planning.

Going with this approach means you won't likely earn rates as high as you would with online banks. However, many regular banks, such as Bank of America, U.S. Bank and Chase, offer relationship banking — if you have enough money deposited with them (think $10,000 to $100,000), you'll access higher returns on savings accounts.

If you don't have that much to deposit, it doesn't mean you won't have options either. Instead, look for promotional rates on CDs and savings accounts, as banks offer higher rates on them, so you can still earn a healthy return.

There are many avenues when choosing the right savings account for your needs. Start by prioritizing what you're looking for out of a savings account, then find a solution that fits best within that framework. Doing so puts you on the road to maximizing cash without the risk.

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Question: I'm retiring in a few years and want to reallocate around $100,000 to a less risky investment. Which savings account would work best for me?

Answer: There are several solutions in which you can earn thousands of dollars risk-free in a year. Two of the most popular choices are jumbo CDs and high-yield savings accounts (HYSA).

Which one would work best for you? I'll break down when to use each and which one earns you the most cash.

A flexible option that keeps your cash accessible

The first factor you should consider is whether you'll need access to any of the $100,000 within the next year. If you do or want the flexibility to reinvest in something else in a few months, I recommend a high-yield savings account.

What I like about them is that you can earn healthy rates of up to 4.20% APY with online banks with no fees. This allows you to maximize your cash in a quick window. You'll also receive FDIC insurance with many banks, protecting your investment up to the first $250,000 deposited per account holder.

Use this Bankrate tool to shop for the right savings fit:

Why now: The Iran War increased gas prices by 20%, so it's safe to say the cost of everyday goods will rise. David Payne of the Kiplinger Letter notes that even if gas prices revert to where they were, he thinks inflation will rise to 3.0% by the end of the year due to rising health care costs and tariffs' impacts.

If the Fed cuts rates later this year and inflation continues to rise, it'll squeeze your earnings. With a HYSA, you won't have to worry about any early termination fees. You can make adjustments as needed, keeping you ahead of the game so you don't feel the pinch.

A commitment worth sizable gains

Another option to consider is a jumbo CD. It has many of the same rules as a regular CD, in that you can't withdraw your deposit before the maturity date, unless you want to pay an early-termination fee amounting to a few months of earned interest.

Moreover, as its name implies, jumbo CDs are reserved for larger deposits — think $50,000 to $100,000 minimums. The good news for investors is that these CDs have quicker maturity (terms range from six months to one year), making them a good short-term strategy if you want to reallocate some retirement funds to less risky ventures.

Use this Bankrate tool to compare and find the best CD options for you:

Why now: The Federal Reserve will have a new chair in May. President Donald Trump nominated Kevin Warsh to the post. Provided the Senate approves his nomination, he'll take over for Jerome Powell. If they don't, Powell will fill in on an interim basis.

This matters because Warsh has stated previously that interest rates should be lower. However, the Fed has a delicate balancing act as inflation continues to rise and the job market continues to be weak, so there might not be a rate cut this year. Even with the uncertainty, now is a great time to lock in one of the highest APYs without having to worry about Fed policy.

Which savings account earns me more?

Here's how much you can earn with each savings option:

Using this example, a jumbo CD will earn the most money. It's also the ideal option if you don't have cash flow issues as it features a fixed interest rate, allowing you to maintain higher earnings even if the Fed cuts rates later this year.

However, the earnings difference isn't substantial. Either way, you're going to earn at least $4,000 effortlessly in a year with access to your cash. Therefore, your cash liquidity and short-term goals will direct the course to help you choose the best option for your needs.

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Tax season often brings a familiar ritual: filing your return and waiting to see how big your refund will be. For many households, that refund can feel like a financial bonus arriving just as spring expenses begin to pile up. According to the Internal Revenue Service (IRS), the average tax refund is currently $3,742.

But a large refund also means something else. You may have given the government an interest-free loan during the year.

Instead of sitting with the IRS, that same money could have been earning interest in a savings account, growing in an investment portfolio or helping you reduce debt. Even modest returns can add up when money stays in your own account throughout the year. While refunds can still serve a purpose for some taxpayers, it is worth understanding the opportunity cost.

Why tax refunds happen

Each year, the IRS issues hundreds of billions of dollars in tax refunds to U.S. taxpayers. Refunds typically happen for several reasons:

• Too much federal tax withholding from paychecks
• Estimated tax payments that exceeded actual tax liability
• Refundable tax credits, such as the Child Tax Credit or Earned Income Tax Credit
• Outdated W-4 forms that don't reflect a taxpayer's current situation

Changes like marriage, divorce or a new child may not be reflected in withholding adjustments when you file your taxes, which can impact your refund.

Many people also intentionally over-withhold because they want to avoid owing taxes when they file. Others treat their refund as a type of forced savings plan.

While that approach can help some households build a lump sum, it also means the money wasn't working for them during the year. So how much could that money actually earn if it stayed in your account during the year? The answer depends on where you keep it.

What your tax refund could earn in a high-yield savings account

High-yield savings accounts have offered higher interest rates in recent years than traditional bank accounts.

If the average $3,742 refund had instead been kept in a high-yield savings account earning 3% to 4% annually, it could have generated:

• About $112 in interest at 3%
• About $150 in interest at 4%

That may not sound like a huge amount, but it represents money earned simply by keeping the funds in your own account rather than sending them to the IRS through excess withholding.

High-yield savings accounts also offer flexibility. You can typically access the money anytime without penalties.

While rates are still elevated, use the tool below to explore and compare some of today's top savings account options:

What your tax refund could earn in a CD

Certificates of deposit (CDs) can sometimes offer higher yields than savings accounts, depending on the term. In exchange for locking your money away for a set period, banks and credit unions may offer a slightly higher interest rate than a typical savings account.

Below is an example of what a $3,742 tax refund could earn in CDs with different terms using rates from several top CD accounts Kiplinger has reviewed.

CDs typically require you to keep the money invested for the full term. Withdrawing funds early can trigger penalties, which often equal several months of interest. For savers who are comfortable locking up their money for a fixed period, however, CDs can offer predictable returns and protection from market volatility.

What your tax return could earn in the stock market

The opportunity cost becomes more noticeable over longer periods. Historically, the S&P 500 has averaged roughly 10% annual returns over the long term, though results vary significantly year to year and returns are never guaranteed.

If that same $3,742 had been invested instead of withheld, the potential growth could look something like this:

• 1 year: about $374 in growth
• 5 years: about $2,283 in growth
• 10 years: about $5,963 in growth

This example illustrates how even relatively small amounts can grow significantly over time through compounding.

Of course, stock market investing involves risk and short-term returns can fluctuate widely.

How to avoid overpaying taxes during the year

Taxpayers who want to keep more money in their pockets during the year can take a few steps to better align withholding with their actual tax bill.

• Review your W-4. Updating your W-4 allows you to adjust how much tax is withheld from each paycheck.
• Use the IRS withholding estimator. The IRS provides an online calculator that can help determine whether your withholding is on track.
• Adjust withholding after major life changes. Marriage, children, new jobs or side income can all affect your tax situation.
• Check withholding mid-year. Reviewing your tax situation halfway through the year can help prevent surprises.
• Work with a tax professional if income varies. Self-employed workers or freelancers may need more customized withholding or estimated tax planning.

When a tax refund might still make sense

Despite the opportunity cost, a refund isn't always a bad outcome. In some cases, refunds are unavoidable or even beneficial.

For example, refundable tax credits may generate a refund regardless of withholding. Also, self-employed taxpayers sometimes overpay estimated taxes to avoid penalties and those with irregular income may prefer a buffer to ensure they don't underpay.

For households that struggle to save consistently, a refund can also function as a once-a-year financial reset, providing money to build an emergency fund, pay down debt or cover large expenses.

Still, understanding the potential earnings that refunds represent can help taxpayers make more intentional decisions about how much they send to the IRS throughout the year.

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March is Women's History Month, a time to celebrate progress while also taking a clear look at areas where financial disparities still exist. One of those areas is savings.

Research consistently shows that women tend to be disciplined savers. They are often more likely to budget, build emergency funds and prioritize long-term security. Yet when researchers compare retirement accounts, investment portfolios and overall wealth, women's balances frequently fall behind men's.

This gap does not stem from a lack of financial responsibility. Instead, it reflects structural and behavioral factors that affect how money grows over time. Understanding those forces and knowing how to counter them can help women build stronger long-term financial security.

Why the gender savings gap still exists

Many studies show that women actively participate in saving and retirement planning. In fact, women often contribute to retirement plans at similar or even higher participation rates than men. Despite this consistency, average balances tend to be smaller.

Several structural factors help explain the gap:

• The gender pay gap means women typically earn less over their careers.
• Women tend to live longer, which requires larger savings to support longer retirements.
• Caregiving responsibilities often interrupt income and retirement contributions.

Each of these factors may seem manageable on its own. But over decades, they compound. Lower earnings mean smaller retirement contributions, while career interruptions reduce both savings and the investment growth that would have occurred during that time.

Even small differences in income or years worked can create significant differences in long-term balances.

The role of income and career breaks

Income plays a direct role in the ability to save. When earnings are lower, the amount available to invest naturally shrinks.

Women also step out of the workforce more frequently to care for children, aging parents or other family members. These career breaks affect finances in several ways:

• Retirement contributions pause during time away from work.
• Investment growth slows because money remains out of the market.
• Re-entering the workforce may involve lower wages or part-time work.

A few years away from the workforce can translate into tens of thousands of dollars in missed retirement contributions and compounded growth.

For example, someone who contributes $6,000 annually to a retirement account and earns an average 7% return could accumulate roughly $82,000 over ten years. Missing even a portion of that timeline can have a lasting effect on future balances.

The investing confidence gap

Another factor researchers frequently identify is the investing confidence gap. Even when women invest, many still question their own investing knowledge, and that uncertainty can affect how quickly they take action or how much risk they feel comfortable taking.

In the Charles Schwab Women Investors Survey, 89% of women said they feel very or somewhat confident in their overall investment strategy. Yet in the same report, far fewer identified knowledge as a personal investing strength; only 21% selected it. That disconnect can affect behavior, leading some women to delay investing or keep a larger share of savings in cash.

Research also shows that when women do invest, their results often match or exceed those of men. Women tend to trade less frequently, stay disciplined during market volatility and maintain long-term strategies.

Still, hesitation at the beginning can slow wealth accumulation. The earlier money enters the market, the more time it has to grow through compounding. Waiting five or even ten years to start investing can significantly reduce long-term returns.

Why this matters more than ever

As wealth patterns shift, the issue is becoming more significant. Financial researchers often refer to the coming decades as the largest wealth transfer in U.S. history. Trillions of dollars are expected to move from older generations to younger ones through inheritance, and a substantial share will ultimately pass to women.

Women also frequently become the primary financial decision-makers later in life due to widowhood and longer life expectancy.

These trends make financial literacy, investing confidence and long-term planning increasingly important for women’s financial security. Developing those skills now can help women manage and preserve wealth more effectively over time.

Strategies women can use to close the gap

While some factors contributing to the savings gap are systemic, women can still take practical steps to strengthen their financial position. Here are a few strategies to consider.

Start investing as early as possible. Time is one of the most powerful drivers of wealth. Even modest contributions can grow significantly over decades. Starting early allows compound growth to work more effectively.

Take full advantage of employer retirement plans. Employer-sponsored plans such as 401(k)s often include matching contributions. Failing to contribute enough to receive the full match means leaving free money on the table.

Increase contributions after career breaks. When returning to work after time away, increasing retirement contributions, even temporarily, can help offset lost savings years.

Consider professional guidance if needed. A financial adviser can help create an investment plan, clarify goals and provide accountability. For many people, professional guidance reduces uncertainty around investing decisions.

Automate savings and investing. Automatic transfers into retirement or brokerage accounts remove the need for constant decision-making. Automation turns saving into a routine rather than a recurring task.

Small changes can make a big difference

The savings gap between men and women did not develop overnight, and closing it will take time. But progress often begins with small, consistent actions.

Women already demonstrate strong saving habits. Pairing those habits with earlier investing, higher contribution rates and growing financial confidence can significantly improve long-term financial outcomes.

Over time, consistency matters more than perfection. Steady contributions and disciplined long-term investing can help women narrow the savings gap and build stronger financial security.

Related Content:

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• Why Most Millionaires Don't Feel Wealthy — and What It Really Takes to Feel Financially Secure
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Are you retiring soon and have savings goals you need to meet? This is where a certificate of deposit can be helpful. It provides guaranteed returns without risk.

In turn, you won't have to worry about market fluctuations or Federal Reserve policy impacting your earnings. Short-term CDs, in particular, can be a wise savings vehicle as you approach retirement because they can help you reach your goals without tying up your money for years.

It is why I'm going to highlight a specific short-term CD to consider for savers with larger cash reserves (think $50,000 or more). I'll also offer some things to consider before diving into this approach, and how much you can earn.

Maximize your growth in months, not years

When examining CD options, I recommend jumbo CDs to those with larger cash reserves. Why? Because they work similarly to regular CDs, in that you tie up your money for a few months to a year, but you also receive the benefits of a regular CD. Chief among them is fixed interest rates.

It means if the Fed cuts rates sometime this year (which is possible, according to Kiplinger's interest rate outlook), it won't impact your earnings if you sign up for one soon. There are differences between the two CD types as well.

Jumbo CDs require larger deposits, usually around $50,000, but some banks want a minimum of $100,000. Terms range from six months to a year, allowing you to maximize your returns without tying up your money for an uncomfortable period.

If you want to lock one in soon while rates are as high as 4.35% APY, use this Bankrate tool to find the right match for you:

Here's a few reasons why I like them:

• Earn APYs as high as 4.35%
• Guaranteed returns
• Many banks offer FDIC insurance, protecting your deposits up to $250,000
• Quick terms of six months to a year ensure you don't lose cash access for long

The tradeoff: Weighing risk and reward

CDs are not what you would call the most flexible savings vehicle. If you choose a jumbo CD, your money must remain on deposit for the term, or else you face stiff early termination fees that could cost you hundreds of dollars. And that's no good.

The other thing to keep in mind is that you'll limit your earnings with this approach. Some jumbo CDs offer the highest returns of any savings account, but investing can traditionally offer more if you don't mind the risk.

That's why these CDs work best if you're approaching retirement and target specific goals where you already have the cash, and want to earmark it for expenses down the road. This can include:

• Home improvements
• Down payment on a second home
• Splurge purchases, like a classic car or boat
• Reallocating some of your money to less risky investments as you retire
• Starting a business

Two more things to consider before opening one: Your earnings are subject to tax as ordinary income. Considering you could earn a significant amount in a short time, make sure to budget for taxes so you're not surprised when you file.

The other thing is that many banks auto-renew CDs. Therefore, set a reminder on your phone a week or two before the CD matures. This will give you time to investigate options before you make your next move. Of course, if jumbo CD rates are still high, and you don't need the money right away, you can let it ride and see your earnings really add up.

How many can I really earn with a jumbo CD?

Now, we get to the fun part. Here are a few of the top-earning jumbo CDs I found, and how much you can earn with the minimum required deposit for each:

As you can see, you'll earn up to several thousand dollars in a year effortlessly with this approach. Best of all, you'll have quick access to your cash, allowing you to pivot to other investments as the market changes or cash out to fulfill your short-term savings goals.

What if I don't have enough for a jumbo CD?

If this is the case, you can choose a short-term CD that coincides with your savings goal and deposit capacity.

To demonstrate, if you're saving for a trip you're taking in a year, the best one-year CD rates can help you reach them. Keep in mind that CDs have terms ranging from three months to five years, allowing you to match the right account to your goals. If you don't have a specific time goal, I've found the highest CD rates out there are typically on six-month CDs at the moment.

Moreover, deposit requirements for CDs vary by banks. Usually, you'll need at least a $500 to $1,000 minimum to open many CD accounts. However, there are also some, like Vibrant Credit Union, that offer a six-month CD for only a $5 minimium deposit. Therefore, even if you don't have a huge deposit available, you can still qualify for a CD and earn many of the same benefits.

Don't leave thousands on the table

Jumbo CDs are a smart solution for savers with significant cash reserves. They allow you to allocate a portion of your investments to a less risky vehicle, helping you earn thousands of dollars per year. This makes them a great choice for those approaching retirement who need a short-term savings option.

Just remember, these CDs require you to keep your money in for the whole term. Withdrawing early comes with steep penalties. However, if you want to avoid market risk and volatility, signing up for one today ensures you earn the highest rates while they remain available.

Related content

• See Our Best Jumbo CD Rates
• Here's How Much You Can Earn with a $100,000 Jumbo CD
• Do You Have a CD Maturing Soon? Here's What to Do Next

Do you have a long-term savings goal as you approach retirement? You might want to save for a down payment on a house as you plan to downsize or upsize, or maybe you're saving for a big vacation with family or friends.

If you have a goal in mind, finding the right savings solution can help you stay on track to achieve it. This is where the best five-year CD rates can be useful.

A five-year CD is a fixed savings option that requires you to deposit your money and leave it for the entire term. It also offers fixed interest rates, so you don't have to worry about decreasing returns if the Federal Reserve cuts rates.

There are pros and cons to using these tools, which I'll get into. Then, I'll discuss three smart reasons to use one and one costly mistake to avoid.

Why I like five-year CDs

Here are a few reasons why I like five-year CDs:

• They offer guaranteed returns
• APYs currently outpace inflation
• Many come with FDIC insurance, protecting your assets up to $250,000 per member

If you're ready to secure your financial future for the next five years, don't wait for rates to drop. Compare the best five-year CD rates using the tool below to lock in a guaranteed return and start working toward your long-term goals:

Things to consider before opening one

On the other side of the coin, here are a few things to keep in mind before signing up for a five-year CD:

• You could earn higher returns with index funds and other investment vehicles, historically
• Early termination penalties are high, equating to a year of earned interest
• Inflation can eat away at your future earnings

If you're OK with the risks, here are three smart reasons to use a five-year CD:

1. Saving on a down payment for a home

As you approach retirement, you might consider changing your address. You could be following a trend where you want to upsize in retirement to accommodate family gatherings or downsize to reduce maintenance.

In any case, a five-year CD can help you stay on track toward your goal. The reason is that they require discipline — if you cash it out before maturity, it can lead to serious financial consequences, such as losing hundreds or thousands of dollars in early withdrawal fees.

As such, earmarking money you know you won't touch can give you confidence that you'll reach that goal in time to buy your home. Use our mortgage calculator to determine how much you'll need to put down to make your mortgage payment budget-friendly.

2. Reallocating money as you near retirement

Another reason to consider a five-year CD is if you're approaching retirement and are looking for less risk for a portion of your investments. A five-year CD fits the bill well because you won't have to worry about market volatility.

You can devote a portion of your money to guaranteed growth. Say you place $100,000 in a five-year CD with SchoolsFirst Federal Credit Union, at a current APY of 4.00%. After five years, you would earn $21,665.29.

To be fair, you won't earn rates nearly as high as you would with an index fund tied to the S&P 500 or other investments, based on historic performance. Yet, you also won't have to worry about loss and volatility, either.

You can park the money for five years, earn a significant return, then reinvest it as your financial needs evolve. It can also achieve balance for your portfolio, especially if it contains a lion's share of higher-risk investments.

3. Starting a business

As you approach the finish line of your career, your retirement gives you the financial freedom to explore side gigs or to start your own business. Doing this keeps you active, earns you more income and helps you socialize.

If you already have an idea of what you want to start, then saving for it now ensures you're prepared to hit the ground running when you retire. A five-year CD can be a smart way to save for future business expenses, as you can predict how much you'll need at the time of funding.

Most important, you won't have to rely on as much credit. Using the five-year CD example above, if you plan to start a business in retirement, you could have an extra $20,000 or more by the time you retire. This can give you seed money to buy supplies, advertise, set up an LLC and other expenses that might arise.

While these are suitable options for tucking your cash away for five years, there is a situation when using a five-year CD won't be beneficial.

Avoid this five-year CD mistake

You should not put the entirety of your cash savings in a five-year CD, especially if you'll retire before the five-year term is up. This is also true even if you have other savings, but they're tied up in the market.

While you need to have appropriate savings for your retirement, you also need an appropriate amount of those savings to be immediately accessible to pay bills in your post-salaried life. Five-year CDs feature steep early withdrawal penalties, which could do more harm than good if you need regular cash access and don't have other savings available.

The only time this would potentially work is if you're using a five-year CD as part of a laddering strategy with short-term CDs. Then, you'll have regular access to income.

How it works is that you open a series of CDs, staggering their maturity dates to give you cash access. An example of this, using a $100,000 deposit, would be:

• $20,000 to a six-month CD
• $20,000 into a one-year CD
• $10,000 into a three-year CD
• $25,000 into a five-year CD
• $25,000 into a no-penalty CD (that allows withdrawals after a week)

An alternative savings consideration with less maintenance is to allocate some funds into a high-yield savings account. It will be a better short-term solution because you'll have access to cash as needed, and you won't have to manage five CDs.

With rates as high as 4.35% APY with minimal fees, a high-yield savings account is a great way to stay ahead of inflation and reach savings goals.

Use this Bankrate tool to find the best high-yield savings account options for your needs:

Five-year CDs can help you reach your goals

Approaching retirement opens the door to other opportunities. Whether you want to move, start a business or allocate money to less risky investments, you can have peace of mind knowing a five-year CD can help you reach your goals.

Related content

• Best 5-Year CD Rates
• Do You Have a CD Maturing Soon? Here's What to Do Next
• Here's How Much You Can Earn with a $100,000 Jumbo CD

When the Federal Reserve holds interest rates steady, it can feel like nothing changes for everyday savers. But behind the scenes, banks and financial institutions are still competing for deposits, and some are paying far more than others for the privilege of holding your cash.

If your money is sitting in a traditional savings account earning a fraction of a percent, you're not just missing out on growth. You may be losing ground to inflation, even in a stable-rate environment. The good news is that you don't have to lock your money away for years or take on stock market risk to do better. With a little strategy, you can keep your cash accessible while earning a meaningfully higher return.

Here's how to think about where your savings really belongs, and what it could be worth over time.

Why "safe" doesn’t always mean "smart" with your cash

For decades, savers were taught that the safest place for their money was a traditional bank savings account where the balance never drops and access is always easy. That instinct still makes sense, especially after periods of market volatility.

But safety isn't just about avoiding losses. It's also about making sure your money keeps its ability to pay for what you need in the future.

When your savings earn very little interest, you're effectively accepting a guaranteed loss in purchasing power if inflation runs higher than your account's yield. That can quietly undermine long-term goals, such as building a true emergency cushion, saving for a home down payment or setting aside money for a future career transition or sabbatical.

"Safe" money that doesn’t grow enough to keep pace with rising costs may feel stable, but over time it can leave you less financially flexible than you expected.

What counts as a low-rate account today

A low-rate account is typically any savings or money-market account paying well below the prevailing market rates offered by competitive banks and credit unions. While many large, well-known banks still offer rates under 1% APY, smaller institutions and online-only banks often pay several times that amount.

This difference exists because traditional banks rely heavily on customer loyalty and convenience, such as branch access, bundled services and brand recognition, rather than higher interest to attract deposits.

Online banks, on the other hand, often compete almost entirely on price. For savers, that means the same FDIC or NCUA insurance protections, but very different outcomes when it comes to how much your money earns over time.

How inflation erodes real returns

Inflation doesn't show up as a line item on your bank statement, but its effects are everywhere: higher grocery bills, rising insurance premiums, increased rent or property taxes. When your savings grow slower than prices rise, your money buys less with each passing year.

Even a small gap between your account's interest rate and the inflation rate can have a meaningful impact over time.

For example, if inflation averages 3% and your savings earn 0.5%, your real return is negative 2.5%. That means your emergency fund, while still intact in dollar terms, may not stretch as far when you actually need it. Over long periods, this erosion can turn what looks like a healthy cash reserve into one that falls short when major expenses arise.

What your savings could earn over time

Here's how much the same amount of money could grow in a low-rate account versus a higher-yield option, assuming:

• Low-rate account: 0.5% APY
• High-yield account: 4.5% APY
• Interest compounded annually

Even modest savings can grow when your interest rate keeps pace with the market.

At mid-level savings balances, the opportunity cost of low yields becomes harder to ignore.

For larger cash reserves, rate differences can translate into thousands of dollars in additional earnings over time.

Even over a relatively short time horizon, the difference can amount to a used car, a vacation fund or a boost to your emergency savings.

Use the tool below, powered by Bankrate, to explore and compare some of today's top savings offers:

Where to keep your savings for stronger returns

Several types of savings accounts can offer higher yields while keeping your money accessible and federally insured.

High-yield savings accounts

These accounts function much like traditional savings but typically pay several times more in interest. Most are FDIC- or NCUA-insured, meaning your money is protected up to legal limits, just like at a major bank. They’re well-suited for emergency funds, short-term savings goals and cash you may need on short notice.

Online banks vs. traditional banks

Online banks often offer higher yields because they don’t maintain expensive branch networks. The tradeoff is a more digital-first experience, which may mean no in-person service but better mobile apps and fewer fees.

Traditional banks still appeal to customers who value face-to-face help or who bundle checking, loans and savings in one place. But that convenience often comes at the cost of lower interest.

Money-market accounts

Money-market accounts combine features of savings and checking, often paying competitive rates while allowing limited check-writing or debit card access. They can be a good fit for savers who want slightly more flexibility without giving up yield.

Short-term CDs vs. liquid cash

Certificates of deposit (CDs) typically offer higher rates in exchange for locking up your money for a set period. Short-term CDs, ranging from three months to a year, can be a smart compromise if you have cash you don’t expect to touch soon but still want relatively quick access.

How to protect liquidity without losing yield

Emergency fund rules of thumb

Experts recommend keeping three to six months’ worth of essential expenses in an account that’s easy to access. A high-yield savings or money-market account is often a better home for this money than a low-rate savings account because you can still reach it quickly, but it works harder while it waits.

Laddering strategies

If you’re considering CDs, a laddering approach can help. Instead of locking all your money into one long-term CD, you spread it across multiple CDs with different maturity dates. That way, you regularly regain access to a portion of your cash while still benefiting from higher rates.

When to keep cash vs. invest

Money you’ll need in the next year or two generally belongs in cash or cash-like accounts. Longer-term funds, such as retirement savings, are often better invested for growth, even if that means tolerating some market ups and downs.

Real-world tradeoffs: Safety, access and yield

Every savings choice involves balancing three factors: how safe the money is, how easy it is to access and how much it earns. FDIC- and NCUA-insured accounts keep safety high across the board up to their limit, so the real differences come down to convenience and yield.

Some people prefer the simplicity of one bank for everything. Others are comfortable splitting accounts by using a local bank for checking and an online bank for high-yield savings to maximize returns.

Many savers find that using two or three different accounts for different purposes gives them the best overall balance between convenience and performance.

Taxes and account types to consider

Interest income doesn’t always feel like “income,” but the IRS treats it that way. At tax time, your bank will report how much interest you earned, and it may increase your tax bill.

For savers in higher tax brackets, this can slightly reduce the effective return of even a high-yield account. That’s one reason long-term savings goals often benefit from tax-advantaged accounts such as IRAs, HSAs or employer-sponsored retirement plans, where growth can be tax-deferred or even tax-free, depending on the account type.

Your money should be working as hard as you do

Leaving money in a low-rate account isn’t just a passive choice. It’s an active decision to accept lower growth. In a steady-rate environment, the advantage often goes to savers who shop around, compare options and aren’t afraid to move their money to a better home.

The right account won’t just protect your cash. It will help it grow, preserve its buying power and support the goals you’re working toward, whether that’s peace of mind, financial independence or simply having more options when life throws you a surprise.

Related Content:

• If You Put $500 in a CD for 5 Years, Here's How Much Money You'd Have
• How to Keep Your Savings Safe
• Money Market Account vs High-Yield Savings Account

My grandma used to say a penny saved is one less you'll have to earn in the future. I was a kid at the time, so that message didn't resonate well. I was more focused on using the money I earned from mowing the lawn to acquire toys and video games.

However, as an adult, that message really changed the way I approached spending and saving my money. Why not make your money work for you, so you don't have to work harder in the future to earn more of it?

This is where psychology comes into play. Psychology and money choices are linked, and you can use this link to make saving easier throughout the year. Here are four tricks you can employ to save more in 2026.

1. Break bigger goals down into smaller ones

Wanting to save more is a lofty idea, but if you don't have a "why" for it, you'll find it harder to achieve. Your purpose is your roadmap, setting a course for you to achieve a specific goal.

Whether you're saving to make a down payment on a home, do home renovations without credit, establish an emergency savings fund, or just upgrade your hotel room on your next trip, write down why you're saving and set a goal for how much you want to save.

"Define very specific financial goals and why they are important to you," Lillian Knight, a licensed therapist and owner of Lillian Knight Financial Therapy, tells Kiplinger.

Then, she says, "Break them down into smaller goals if needed." If you want to save $50,000 for a down payment for a home, you're not likely to achieve that in one paycheck. However, if you set smaller, attainable goals, such as saving a certain amount each month, you gain more confidence in your ability to achieve them.

As you reach these smaller milestones, you build momentum. "You get the satisfaction and dopamine hit of achieving the short-term goals while saving for the longer-term goals," Knight says.

2. Create healthy barriers to protect your goals

People don't just change their habits on a dime. If you tend to spend more than you should, willpower alone won't necessarily help you become a better saver. Often, it helps create barriers that save you from your worst self.

For example, Knight suggests, "Make contributions to savings automatic so that you don't have to rely on motivation to save in the moment."

Ask your employer to send a certain percentage or dollar amount of each paycheck directly to your savings account, rather than a checking account. Set aside as much as you can, as the more you can grow your balance, the more motivated you'll be to ride the wave of earned interest.

Putting your money automatically in an online bank savings account will also discourage you from spending it right away. To spend the money, you'd either need an ATM card, which not every high-yield savings account provides, or you'd need to transfer the money to your checking account. Transferring money between accounts takes time (sometimes up to three business days), so you'll hold yourself back from impulse purchases.

If you need help getting started, here are some of the best high-yield savings accounts:

Keep in mind that while this will help fill your savings account, it won't necessarily stop you from making impulse purchases with a credit card. To further rein in spending, consider using one of the best budgeting apps. Personally, I'm a fan of Empower.

3. Visualize your achievement

Don't forget that these behaviors will make things easier for you in the future. A study conducted by PubMed Central found that participants who viewed their future selves through age-progression technology were more likely to make financial decisions that benefited their future selves, such as allocating more money to retirement.

Part of the psychology behind this, the researchers wrote, is that we often "fail, through a lack of belief in imagination, to identify with [our] future selves."

This illustrates how visualization is a motivating factor. If you're saving for a home, picture what it would be like to receive the keys for the first time or what life looks like in the neighborhood you want to live in. Doing this makes it real, which can help you maintain that focus.

It also reminds you that your future self and your current self are the same person, as odd as that might sound. When you choose to overspend today and let "future me" deal with the consequences, you're just hurting yourself. On the flip side, every positive move you make today helps you, even if you won't see the fruits of your labor until the future.

4. Have an accountability partner

One of the best ways to stay on course with your savings goals is to share them with a trusted loved one or spouse.

"If you are partnered, regular money meetings where you discuss progress toward shared financial goals can be a source of motivation and connection that helps increase patience," remarks Knight.

When choosing an accountability partner (unless it's your spouse), find someone who's had success with a similar goal. Glean insights from them and have regular conversations about how you're doing, not only with achieving goals, but also with how you remain patient and persistent throughout the process.

Having someone in your corner cheering you on can help you weather the doubts or the impatience that can creep up when trying to save for long-term goals.

Long-term rewards: Financial independence and peace of mind

Reaching your long-term savings goals feels like a tremendous accomplishment. It gives you confidence that you are on the right track with your spending and savings habits. It can provide added momentum to achieve other financial goals you have.

Furthermore, with every savings goal you reach, you're on the road to financial independence. If a job loss or surprise bill arrives, you have the peace of mind of knowing you can use your savings to pay for them instead of relying on debt that'll take you farther from your goals.

Remember, savings isn’t just financial growth — it's a confidence and security boost that feeds motivation.

Related content

• Where to Store Your Cash in 2026
• Why Your Bank Suddenly Lowered Your APY — And What to Do Next
• Best No-Fee High-Yield Savings Rates: January 2026

President Donald Trump nominated Kevin Warsh, a former governor of the Federal Reserve, to be the next head of the Fed back in January. On Wednesday, Warsh received confirmation from the Senate, which voted 54-45 to make Warsh the next Fed chair.

Warsh served on the Federal Reserve Board of Governors from 2006 to 2011, after being nominated by President George Bush. On the Fed chair selection, President Donald Trump said in a social media post, "I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best."

Trump's appointment could impact the Fed's future policy — which will influence how much you'll earn on your savings accounts. Here's what savers should know.

A policy tug-of-war between Trump and the Fed

Trump has criticized the Federal Reserve for being slow to cut interest rates and frequently called for deeper cuts. After the Fed reduced rates by 25 basis points last December, Trump said the move "could have been doubled," according to Bloomberg. Trump wants much lower interest rates to help economic growth by lowering borrowing costs.

Warsh has built a reputation as an inflation hawk, often favoring higher rates. More recently, however, he has criticized the Fed for being slow to cut rates, calling that hesitancy a "mark against them" in a July interview with CNBC.

Meanwhile, inflation is a major sticking point for the Federal Reserve. The latest CPI report showed the Consumer Price Index rose 4.2% year-over-year.

Energy costs were the chief culprit in rising prices. While the Iranian War resolution lowered fuel prices, it could take until 2027 for energy prices to fully stabilize.

This means that while inflation is likely at its peak, it could remain sticky throughout the summer months, making it difficult for the Fed to do anything but wait it out.

Will the new Fed chair lead to more rate cuts?

Trump's appointment of Warsh signals a desire for a more aggressive approach to rate cuts. Even so, a Fed chair more aligned with the president's policy preferences does not guarantee a steady pace of rate reductions.

The reason? The Federal Open Market Committee (FOMC) has 12 voting members. The Fed chair only has one vote and must build consensus with the committee to shape policy decisions.

However, there's one key area to watch: The Board of Governors has seven members, three of them Trump appointees.

Jerome Powell, who will end his term as the Fed chair on Friday, announced he would remain on the Board of Governors to help the Fed keep its independence. He will also serve a crucial vote on Fed rate decisions moving forward until his term ends in early 2028.

How can savers prepare for a new Fed chair?

Your best course of action is to find a savings account that keeps pace with inflation. If you have short-term savings goals, a high-yield savings account remains one of the wisest choices.

You can earn APYs as high as 4.20% with minimal fees. Just know that if the Fed cuts rates in the future, it could impact your earnings since savings accounts have variable rates.

Use this Bankrate tool to find the best options fast:

If you have the flexibility to lock in your cash, you should look at CDs. Unlike high-yield savings accounts, CDs have set rates, so what you get now is what you'll get through the whole term of the CD, even if the Fed cuts rates.

The tradeoff, however, is that you have to hold your cash in the CD for the full term to get the full interest payout. That means if you get a five-year CD, for example, you would have to leave your cash there for five years.

The best CD rates Kiplinger has found are around 4%, varying depending on the issuer and term. Use this Bankrate tool to find and compare the best CD rates quickly:

Final thoughts on the new Fed chair's confirmation

The Senate's confirmation of Kevin Warsh as the new Fed chair could have a significant impact on future rate cuts. However, keep in mind the Fed has 12 voting members. So, even with another Trump appointee leading the group, it doesn't necessarily mean the Fed will cut rates at every meeting.

The more pressing focus is inflation. As prices keep rising, sheltering your money from its impact becomes more vital. That's where a high-yield savings account can help. It will keep your earnings on pace with inflation. And as prices stabilize and inflation slowly lowers, you'll be in a prime position to improve your purchasing power.

Related content

• 3 Ways Kevin Warsh Will Change the Fed
• The Best High-Yield Savings Accounts
• What's Next for the Fed — as an Institution?
• Keep Ahead of Rising Prices with the Best One-Year CD Rates
• Kiplinger Interest Rates Outlook

It eventually happens to all savers: You'll receive that dreaded email or letter from your bank informing you that the annual percentage yield (APY) on your savings account dropped.

In fact, many savers have been receiving these letters recently. The reason? The Federal Reserve cut rates at each of its last three meetings due to declining job growth. And when that happens, banks follow suit by lowering APYs on all savings accounts.

Therefore, if this has happened to you or you're concerned it could happen soon, I'll cover the next steps you should consider.

Why do banks lower savings account APYs?

Banks can alter the terms of your savings accounts for multiple reasons. Primarily, this happens when the Fed cuts rates.

Why? Because banks use the federal benchmark rate to determine APYs. When this rate drops, it reduces borrowing costs, which also reduces the profit a bank can earn from loans, so they pull back on paying out higher returns on savings accounts.

Rate cuts are not the only reason banks lower APYs. If you're on a promotional rate, when that term expires, you'll also receive a lower return. Banks can also lower APYs if they have too much money on deposit and don't want to cut into their profits. Regardless of the reason, knowing all of your next steps can help you make the best choice for your money.

Does it make sense to stay with the same account?

It depends on what you're planning to do with the money in your savings account. If you're using the account for short-term savings goals, the cuts won't impact your earnings much unless you have larger balances.

To illustrate, suppose you have $5,000 in your high-yield savings account, earning 4.00% APY. Over the course of a year, you would earn $204.04 in interest. If it dips to 3.75% APY, you'll receive $191.05; that's not a significant difference, especially if your goal is only to maintain those savings for the short term or to hold an emergency fund that'll grow conservatively.

However, if you're looking to truly maximize your earnings, see how your new rate compares to some of the best high-yield accounts:

I like these accounts because even with rate cuts, their APYs remain higher, helping you stay ahead of inflation. And in the case of Newtek Bank, you'll earn one of the highest APYs available, with no account fees or balance minimums.

If those rates are significantly higher than your new rate, you should consider switching banks. Thankfully, this is easy to do.

Online bank accounts usually only take minutes to set up by providing all of your basic information (name, address, Social Security number, etc.), and you can fund them via an ACH transfer from your old savings account. Once you do that, you can close your old savings account and enjoy higher returns.

Explore other savings options

If you're not thrilled about rate cuts impacting your earnings, consider other savings options. A CD can shield your money from rate cuts since they have fixed interest rates.

If you're earmarking money for specific goals, CDs help you stay on course. You can map out exactly how much you'll earn over the course of the term, and there are no surprises. Additionally, most CDs have early termination fees, which means if you break the CD term before it matures, you'll lose money, so you're incentivized to keep storing those savings.

How much you lose depends on the term. For short-term CDs of a year or under, you're looking at a few months, while longer-term CDs can cost you six months to a year in earned interest. Therefore, before signing up for one, ensure you can tie up your money comfortably for the term, or choose a shorter term that works better for you.

You can find the best CD rates and terms that work for you using this Bankrate tool:

Meanwhile, if you're concerned about liquidity but don't want rate cuts eating into your returns, consider a no-penalty CD. They offer fixed interest rates, but you can also access your cash after the vesting time. The vesting period runs from one week to a month, depending on the bank.

Keep in mind that withdrawing it early means you won't maximize your return. But you also won't have to pay an early withdrawal fee.

Are more rate cuts on the horizon?

In the short term, it doesn't seem likely. David Payne, of the Kiplinger Letter, notes the Fed will likely leave rates unchanged when it meets in January, as Fed Chair Jerome Powell wants economic trends to dictate the Fed's future policy.

This also mirrors what other economists forecast. CME FedWatch reports there's an 88% chance the Fed doesn't cut rates at its January meeting.

That said, there are two things to watch in 2026: President Donald Trump will appoint a new Fed chair very soon, and he has said he wants someone who would make more aggressive rate cuts. However, there are 12 voting members on the Federal Open Market Committee, so the chair change alone might not sway a voting majority for more rate cuts.

The other thing to watch is what Powell does next. While Powell's term as Fed chair ends in May, he has two years remaining as a Fed governor, meaning he can continue to vote on Fed policy. If Powell leaves, it would create a majority among Trump appointees within the seven-member board of governors, as he gets to pick Powell's successor.

Keep an eye on rate cuts and how they impact your goals

Ultimately, rate cuts can diminish returns. But it doesn't mean there aren't ways to protect your money from them, either. You can switch to a CD or find a HYSA that offers rates high enough that a small drop will have minimal impact on your earnings.

The key is to focus on your goals and be flexible as rates change. Doing so can help you spot the right accounts to help you reach your savings goals quicker, even in a rate change environment.

Related content

• Where to Store Your Cash in 2026
• Seven of the Best Budgeting Apps to Use
• Kiplinger Interest Rates Outlook: Federal Reserve Cuts Rates and Now Will Take a Pause
• Do You Have a CD Maturing Soon? Here's What to Do Next

The Federal Reserve’s interest rate cuts during the fall are having a ripple effect across most consumer savings rates. The federal funds rate — the rate banks use to borrow and lend to one another — recently dropped to a target range of 3.75% to 4%, the lowest level in about three years. And the consensus among economists is that rates will continue to fall modestly in 2026, perhaps by another half a percentage point or so by year-end.

The result for savers: The days of easily earning 5% or more on cash have passed, financial advisers say.

“Many people were getting used to 4% and 5% yields on short-term money, but this is quickly drifting down, to as low as 2% to 3% in some cases,” says certified financial planner Todd Calamita, president of Calamita Wealth Management in Charlotte, N.C. “Complacency can cost people thousands of dollars if they don’t keep a watchful eye on the interest their accounts are paying.”

Today’s lower savings rates, though, are still higher than cash yields have been for much of the past 15 years — 1% or less was common during the period between the Great Recession and the pandemic — and, on average, they continue to outpace inflation. So you can still earn a solid real return if you shop around.

Experts caution, however, that nabbing the best rate shouldn’t be your only consideration when it comes to storing cash. “Safety and liquidity should also guide your decision, not just yield alone,” says Bennett Gordon, a CFP with MGR Wealth Management in Boca Raton, Fla.

Here is what advisers recommend as the best short-term savings options now, depending on how quickly you might need access to your money and your tolerance for risk.

High-yield savings and money market accounts: Easy access, ironclad safety

If you want fuss-free, nearly instant access to your cash, your best bet is a high-yield savings account or a money market deposit account. Many banks and credit unions are paying about 3.5% on these federally insured accounts now, while some online banks are promoting rates of 4% or better.

Recently, for instance, Pibank was paying 4.6% on its savings account, and TIMBR was offering 4.4%.

The trade-off? In return for a better rate, you may be limited to six or fewer monthly transactions or required to meet a minimum balance, typically ranging from $25 to $2,500. Money market accounts, which offer debit card and check-writing privileges, tend to have more restrictions than high-yield savings accounts.

Before switching from your current financial institution, do the math to make sure a move is worth the hassle, Calamita says. You’ll double your payout by moving to a bank paying 4% instead of 2%, but on a $5,000 balance, that translates to only an extra $100 or so a year.

Mutual funds and ETFs: Better returns, a bit of risk

Storing short-term savings or emergency reserves in a money market mutual fund or exchange-traded fund can be a good option if you’re trying to top your bank’s rates but still want strong safeguards against losing money, or if you need diversification and added safety in an investment account, such as an IRA or 401(k).

Sold by mutual fund and investment companies, money market funds invest in high-quality short-term Treasury bills and municipal and corporate debt. While they’re not backed by the Federal Deposit Insurance Corp., they aim to maintain a stable net asset value of $1 per share.

In effect, they pledge that you’ll never lose your initial investment, says Jeremy Keil, a CFP in Milwaukee and author of Retire Today: Create Your Retirement Master Plan in 5 Simple Steps. Top payers recently included Gabelli U.S. Treasury Money Market Fund (GABXX) with a 30-day yield of 4% and DWS Government & Agency (DTGXX), paying 3.94%.

If getting a high rate on your cash is your top goal and you’re willing to accept a bit more risk, ultra-short bond ETFs are also an attractive option. Although the funds, which invest in short-term, investment-grade debt, can fluctuate in value, the shifts are typically tiny.

In 2022, when bonds generally were hammered with double-digit declines, the average ultra-short bond fund lost just 0.1%, according to Morningstar.

High-quality, top-yielding options recently included Fidelity Low Duration Bond Factor ETF (FLDR), with a 30-day yield of 4.49%, and Vanguard Ultra-Short Bond ETF (VUSB) and iShares Ultra Short Duration Bond Active ETF (ICSH), both yielding 4.25%.

For added safety, you might go with a Treasury-only ETF, such as State Street SPDR Bloomberg 1-3 Month T-Bill ETF (BIL), recently paying 3.71%, or BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE), offering 3.64%.

“The most common mistake is comparing a high-quality money market or bond ETF with a low-quality one,” Calamita says. “The rates on the surface can often look very appealing, but there’s no free lunch. A substantially higher yield always means higher risk.”

CDs: Higher returns, delayed access

For cash you won’t need anytime soon, locking in recent yields for several months or even a year through certificates of deposit can be a smart choice, given the strong likelihood of additional rate cuts in 2026. Online banks and credit unions lately have been paying between 3% and 4% on CDs with maturities of one year or less.

Top-yielding CDs include a 13-month CD from Hyperion Bank, recently paying 4.25% (minimum opening deposit: $10,000), and a 13-month certificate from Genisys Credit Union, at 4.3% ($500 minimum).

You can find a CD term that works for you using this Bankrate tool:

These federally insured accounts, however, offer little flexibility. Most charge you a few months’ worth of interest if you remove the funds before the term ends, although some don’t. Look for ones labeled no-penalty CDs if you might need early access to your money.

The downside to CDs? If markets behave unexpectedly and interest rates begin to rise, you risk being stuck in an account paying less than other cash options. So don’t go overboard tying yourself to today’s rates.

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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If you have a CD at the end of its term soon, the first step is to ensure it doesn't automatically renew before you choose what to do with your money.

Even if you renew it, you want to be sure you're making that decision yourself. These steps will help you decide what to do next.

If you miss the maturity date, no worries: Many banks offer grace periods of seven to 10 days after the maturity date, during which you can cancel the CD and still have access to your money without incurring any penalties.

Next, you'll decide whether you want to keep the money in the same CD or explore other options. This is vital; the latest CPI report shows the Consumer Price Index rose 3.8% year-over-year.

It means you'll need to find someplace to store your cash where it earns more than inflation, which CDs accomplish currently. Therefore, if you're on course to reach your retirement plans and want to avoid any short-term market volatility and grow your earnings without much risk, here are some smart options to consider.

Let your CD roll over

In some cases, it does make sense to let your CD roll over. If the rates remain the same and you're satisfied with what you're earning, then there's no need to switch. Make sure your bank will auto-renew the CD and do a quick rate check before they do.

This works best if you allocate some of your money to a less risky investment, don't want to contend with shopping around, and you like the bank you're using.

However, if your financial goals change, you want to try a new bank or you're looking to grow your money in different ways, here are a few other options to consider.

Consider short-term CDs for maximum growth, flexibility

If you don't want to tie up your money for a long period of time, but also don't want to face diminishing returns from rate cuts, a short-term CD could be a smart option. Finding a term from three months to one year ensures you lock in rates while they remain high.

It's perfect, too, if you have short-term savings goals you want to achieve over the next year, such as paying off debt or saving for a trip. What's nice about a short-term CD is that you can get in, earn some money, not worry about Fed rate cuts (CDs have fixed rates) and get your money back quickly for other investments.

You can find and compare some of the best options using this Bankrate tool:

The only thing to remember is that with shorter-term CDs, you face a quicker turnaround time to reinvest those funds. This can be good news if inflation continues to rise and you need to pivot to investment vehicles that can earn you more.

Gain peace of mind with long-term rate protection

Another option is a long-term CD. The best five-year CD rates offer 410% APYs, and locking one in now could shield you from any future rate cuts.

They're also great if you're looking at longer-term savings goals. To demonstrate, you might be retiring in the next five to 10 years, and want to earmark some money for a dream vacation or renovations before downsizing after you retire.

A five-year CD can help you reach these goals without worrying about lower APYs. The only thing to remember is that long-term CDs come with significant early-termination fees, with some levying up to a year of earned interest.

What if neither option sounds good, and you want some middle ground? CD laddering could be a smart approach. How it works is you take some money and spread it over the course of multiple CDs. Here's an example using $50,000:

• Open a six-month CD with $5,000
• Open a one-year CD with $10,000
• Open a three-year CD with $10,000
• Open a no-penalty CD with $5,000
• Open a five-year CD with $20,000

The goal of this approach is to stagger your maturity dates so you're able to lock in higher rates for long-term growth, while also having quick access to some of your cash to fulfill short-term goals or reinvest it in other avenues.

Stay liquid while exploring your next investing steps

If you're unsure where to turn and don't want to tie your money into a long-term CD, a high-yield savings account is still a smart choice to consider. Even though they have variable rates, many of the best high-yield savings accounts haven't had significant drops since the Fed's cuts last year.

There's no guarantee that it will stay that way, as some banks can take months to adjust after the Fed cuts rates. So far, you can earn APYs as high as 4.35%.

Best of all, you have access to your money whenever you want it. This is critical if you're at a juncture where you're changing retirement allocations and need to park your cash and grow it before determining next steps.

Overall, these strategies can help with the next steps after your CD matures. Whether you're looking to save for goals as you near retirement or want some liquidity as you weigh next investment steps, these avenues allow you to reach your milestones your way.

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Whether you're looking to build your emergency fund or save for a short-term goal, a high-yield savings account (HYSA) can help you achieve them. They're also great savings vehicles for investors looking to avoid the short-term capital gains tax.

When searching for a HYSA, the best place is online, because online banks offer much better returns and their accounts usually come with no account minimums or fees.

If you've been curious about opening a savings account online but haven't gotten around to it, I'll show you an easy way to start maximizing your returns. Best of all, you can do it in a matter of minutes.

A checklist for finding a high-yield savings account that fits your needs

Before choosing between a myriad of online savings options, here are a few questions to answer:

• How often do you need to access your money?
• Do you plan to move all your banking online or just your savings?
• Does the APY help you reach your financial needs?
• Is the bank FDIC-insured? (This protects your money up to $250,000 if your bank fails)
• How easy is it to transfer money in and out of the account?
• Does the bank offer responsive customer service?

Answering these questions can narrow down your search. From there, we did the homework for you. I review savings rates weekly and found these to be among the best offerings available:

Steps for opening an online savings account

Once you have the account you want, setting it up is easy. Normally, the bank will guide you through the process through application prompts. You'll need to provide basic information, such as your name, address, phone number, Social Security number, date of birth and email address.

Furthermore, your new bank will have you set up a username and password for online access. Use a password manager such as 1Password to assist you. Password managers create a layer of security with hard-to-crack passwords.

Finally, you'll need to supply your funding information. Usually, when you open an online account, you can transfer money from another bank account via an automated clearinghouse (ACH) transfer.

As such, they'll need your bank account and routing numbers to complete it. Once you finish the application, your bank will review it, verify your identity and you'll receive a confirmation email once they open your account.

Keeping your savings account secure

Since you're accessing your account online, security is essential. Along with using a password manager, keep these online safety tips in mind:

• Never write down your login
• Always enable two-factor authentication (2FA), which is when your bank will text or email you a code to access your account
• Don't use public Wi-Fi to access your account, as others accessing the same network can see your activity
• Set up account alerts via text, as this can help you identify any unauthorized activity so you can report it promptly
• Be aware of phishing scams, in which scammers will text or email you a link claiming to be from your bank, asking for personal information

Doing these things will keep your account safe. It will also help you reap the rewards of having an account that offers you better rates and fewer fees. However, there are a few things you should consider before opening one.

The challenges of online banking

The biggest challenge I've encountered with online banking is making cash deposits, as deposit options vary depending on your bank. Some banks allow you to do so through ATM transactions if you have a card, while others require you to visit a local CVS to complete the deposit (Varo Bank offers this).

A workaround is to deposit cash into your checking account (if you have a local bank) and transfer it electronically via ACH to your online bank. It usually takes just one business day for the transfer.

Another aspect to consider is customer service. With a local bank, you have a face-to-face interaction with a banker. In contrast, online banks handle customer service through phone, chat or email.

If you're uncomfortable with this form of engagement or have an aging parent who relies on in-person guidance, an online account might not be the best choice.

Final thoughts: Making the switch is well worth it

Online banks offer ease of use, higher APYs and fewer fees, but there are a few trade-offs to consider, including limited options for cash deposits and the lack of in-person customer service.

Even so, an online high-yield savings account can help you maximize your returns. Opening one is typically easy and secure, making it a smart step toward reaching your financial goals.

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Jumbo CDs are one of the most versatile tools for savers. If you're sitting on $100,000 and want to diversify some of your holdings into a savings account, this is arguably the best savings solution for you.

Why? Because it achieves several objectives: One, the top-earning accounts offer rates above 4%, helping you earn thousands fast.

Two, jumbo CDs don't require you to tie up money for long periods, as they have terms ranging from six months to one year on average. If you want to make some money, avoid the short-term capital gains tax and have quick access to your cash for other investments, a jumbo CD is a suitable, in-between option while you investigate future moves.

How much can you earn with a $100,000 jumbo CD? I'll break this down, show you the best accounts and key considerations before signing up for one.

A quick way to make thousands effortlessly

Even with the Federal Reserve cutting rates three times, jumbo CD rates haven't dropped yet. Here are some of the best options to consider:

How much can you earn? Let's use our top example, ECFU Financial Credit Union. They have six-month and one-year jumbo CDs offering 4.35% annual percentage yield (APY), which is among some of the best rates I've found with CDs and savings accounts.

This shows you can earn thousands of dollars effortlessly in a quick window. Before you sign up for an account, make sure you understand how jumbo CDs work.

What are the downsides of a jumbo CD?

The first is that you're going to limit your earnings compared with riskier investment strategies. If you were to take that $100,000 and place it in an index fund tied to the S&P 500, returns average around 10% annually. However, with the higher returns come elevated risk, and historic averages are not necessarily indicative of what you could earn.

The other thing to consider is that jumbo CDs work the same as regular CDs in that once you sign up, you're locked in for that term. That's why they work great for diversification because it's a great place to park your money and forget about it. But, if you do need it for any reason before the maturity date, early termination fees apply, amounting to months of earned interest.

This could equate to hundreds of dollars, so this approach makes the most sense when you treat jumbo CDs as a part of your bigger investment strategy.

As a final point, it's important to remember that the interest will count as taxable income, so you should consider if the yield would impact your tax strategy.

Is now a good time to lock in a jumbo CD?

Now is an excellent time to sign up for a jumbo CD. The Federal Reserve has been on a rate-cutting spree due to ample signs of weakness in the job market.

That's what makes CDs such worthwhile investments: They offer fixed interest rates. If you sign up for one today and the Fed cuts rates a few times while you have your CD, it doesn't impact your earnings, since CDs have fixed interest rates.

Given that rates can drop at any moment following a Fed decision, you'll want to strike now while rates far outpace inflation. Whether you want a jumbo CD or another CD term, this Bankrate tool can match you with one fast:

Related content

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If you’re looking for the best interest rate on a savings account, chances are you’ll find it at an online bank. Online banks, which are banks that operate without physical branches, offer convenient digital banking and competitive interest rates that can maximize your return on your savings.

The national average interest rate for savings accounts is 0.61% APY, per Bankrate. However, online banks offer rates as high as 4%.

Since online banks have lower overhead costs, they're able to pass on better interest rates to customers than you'll typically find offered by traditional banks. We'll cover why interest rates change, some of the benefits you'll find with online banks and a few things to consider before making the switch.

How interest rates are changing and why it matters

Interest rates on savings accounts have eased modestly over the past year as the broader rate environment has shifted. The national average savings account rate stood at 0.47% in mid-January 2024 before gradually dropping to 0.39% by December 2025, according to FDIC data.

Why have they lowered? The Federal Reserve issued three rate cuts in 2025 due to a weak jobs market. When the Fed lowers rates, it impacts savers with lower APYs.

Thankfully, there's good news: The Fed refrained from cutting rates at its January meeting. And J.P. Morgan believes the Fed will hold steady with no rate cuts for 2026, making this an ideal time for savers to capitalize on higher rates with online banks.

Use this Bankrate tool to shop and find the best savings accounts fast:

Pros of banking online

For savers weighing whether to make the switch, the benefits of online banking extend beyond higher interest rates. Here are a few pros to consider:

• Higher interest rates and potentially lower fees. Since online banks don't have the overhead of maintaining physical branches, they tend to offer higher interest rates on savings accounts. You may also find that online banks have lower fees than traditional banks.
• Often no minimums. Traditional banks often require you to maintain a minimum balance in your checking or savings account. If your balance drops below the minimum, you'll be required to pay a monthly fee. Some online banks will waive that minimum balance for a fee-free approach.
• Modern mobile features. Online banks often offer modern mobile features, including AI budgeting tools, face and fingerprint ID app capabilities, the ability to freeze and unfreeze your digital card, real-time spending alerts and more.
• Quick account opening/management and low cost. Opening an account with an online bank is typically a quick and easy process. The setup process is typically quick, and you'll often get instant access to your account. Costs tend to be minimal, making digital banking an appealing option.  

Cons and things to consider

While there are many benefits to online banking, you should also be aware of the drawbacks:

• No branches / limited in-person service. Since online banks lack physical branches, you can't get in-person customer service. These banks may offer customer service via phone, online chat or social media, but the customer service methods and availability can vary from bank to bank. If you want the reassurance of being able to go to speak with a person directly, digital banking may not be the best choice for you.
• Cash deposit hassles. Depositing cash in an online bank can be a hassle. Some banks partner with retailers like Walmart, CVS or Dollar General, and you'll need to go to one of those retailers to make your deposit. You may also be able to use an ATM to make a cash deposit.
• Varying rates. While digital banking frequently offers higher interest rates, those rates can still fall quickly, decreasing the value you're getting from digital banking. Some online banks may offer higher promotional rates that will decrease over time. Be sure to read the bank's policies to fully understand how interest rates may change.  

Where to find the best savings rates

With the national average savings rate sitting at 0.61%, the gap between traditional banks and online options remains wide. Here's how a few online banks currently stack up.

• Varo offers a high-yield savings account with 5.00% APY on up to $5,000, and 2.5% APY on the rest of your balance.
• AdelFi’s personal savings account offers new members 5% APY on up to $5,000, and 2.25% APY on balances from $5,000 to $10,000.
• SoFi’s high-yield savings account features a six-month introductory 4.30% APY and a standard 3.60% APY.
• Axos offers an Axos ONE savings and checking bundle. Customers can get up to 4.31% APY on savings and 0.51% APY on checking.
• Newtek Bank: Offers rates of 4.20% APY, with no account minimums or fees

When switching makes sense and when it doesn’t

You may decide it makes sense to switch to digital banking if you have substantial savings and want to maximize the interest your money earns. By switching to a high-yield savings account through an online bank, you may qualify for a substantially higher interest rate than your current APY.

But be careful about aggressively chasing rates, especially if online banks are offering promotional rates. If you're looking for a long-term banking solution, it's important to make sure that the services available and the overall convenience the bank offers truly match your needs. Consider the types of accounts you need and your banking priorities when deciding if an online bank is right for you.

It's common to be worried about the safety of online banking, especially since you won't initially go to a physical branch to open your account and make your first deposit.

Be sure to choose a bank that is FDIC insured. FDIC insurance applies whether the bank is online or brick-and-mortar, and in case of a bank failure, FDIC insurance protects your money up to at least $250,000.

How to decide if an online bank is right for you

Digital banking offers many perks, including higher interest rates than traditional savings accounts provide. But those perks come with trade-offs, including the lack of in-person customer service, cash deposits that can be a hassle and potentially varying rates.

If you're considering switching to online banking, take some time to research each bank and its available products. Compare the current rates and review the fee schedule to understand the potential costs involved and any minimum balance requirements.

You can also take advantage of digital banking interest rates with a hybrid approach. Consider opening a savings account with a digital bank, but also leave your other accounts in your current bank open, too. You can try this hybrid approach to see how well digital banking works for you.

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After you put money in a certificate of deposit, you can sit back while it collects interest over its term. Once it reaches maturity, you’ll face a decision: Renew it or withdraw the funds.

Typically, you have a grace period of about seven to 10 days after a CD hits its maturity date to decide what to do. Your bank may send you a notification a few weeks before the certificate matures.

When you open a CD, it’s also a good idea to put a reminder on your calendar of when the certificate is nearing the end of its term. With this in mind, we'll explain what happens if you miss your grace period, whether now is a smart time to renew with rate cuts and where to find the best CD and savings rates.

What happens if I miss my grace period?

If you don’t act during the grace period, most banks will automatically reinvest the funds into a CD with the same term or a similar one, and the interest rate will typically match what the bank is offering for that maturity on new CDs.

Whether you should renew depends in part on how you’d like to use the money. If you don’t need the cash now, reinvesting may make sense as part of your longer-term savings plan.

Evaluate the interest rate. "Rates on top-yielding CDs are still outpacing inflation," says Ted Rossman, senior industry analyst at Bankrate.

How Fed policy impacts savers

However, as the Federal Reserve lowers short-term rates — it made cuts of a quarter-point in September, October and December, with more reductions likely on the way — CD yields also fell.

If you have a CD coming up for renewal soon, you may want to reinvest in a high-yield certificate, whether from the same institution or a different one, to lock in the yield before rates drop further.

We’ve listed top-yielding one- and five-year CDs (check the institution’s current rates before you invest).

The best one-year CD rates

The best five-year CD rates

You can also compare rates at depositaccounts.com/cd.

If you’d rather not commit to a CD but need a place to park your cash, consider a high-yield savings account.

Best high-yield savings accounts

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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Having a flexible plan is a wise way to handle an uncertain future, especially with inflation rising. The latest CPI report showed inflation increased 3.8% year-over-year, meaning that if you have your cash in an account earning less than that, you're losing money.

With the Iran conflict showing no signs of slowing, crude oil prices will remain high, putting the squeeze on budgets. Thankfully, you don't have to play defense.

There are things you can do to stay on course to reach your goals. Here are smart, actionable steps to get started.

Reassess your cash flow with these budgeting apps

Let's start with the basics. It helps to have a fresh perspective on your finances, as it clues you in on where your money is going, and it might present some savings opportunities you missed before.

The best budgeting apps also make it easier to manage your finances, even if you have multiple accounts with different banks. Having this information at your fingertips is integral for ensuring you reach your goals. If you want a new one to try out, here are some of our favorites:

• Empower. This is a great app for investors and savers alike. The platform is easy to use, and you can integrate your personal and investing accounts within minutes. What I like about it is that you can also add other financial accounts to gain a fuller picture, such as 529 accounts, mortgage and more. Download the app for free on Google Play or the App Store.
• Honeydue. Staying on the same financial page as a spouse or loved one can be difficult with life's hustle and bustle. Take the guesswork out of it with the Honeydue app. What's beneficial is that you can track all expenses on joint accounts, giving you both a complete overview of shared accounts. Best of all, it's free.
• Monarch Money: I like this app because I can manage multiple accounts in one hub and set savings goals. I can even share these goals with my spouse to help us stay on track to reach our savings goals easily.

Build a financial safety net for life's surprises

Life has a way of throwing financial surprises. An unexpected bill or job loss can seriously challenge even the savviest of budgets. It's why having an emergency fund is a smart move.

I built mine using a high-yield savings account, because the best high-yield savings accounts (HYSAs) offer APYs above 4%, which made it easier to grow my balance quickly. I would set automatic transfers from my checking to my savings on payday and leave that money in savings alone. If you go with an online bank, you won't have to contend with monthly fees or minimum balance requirements.

The other thing I like is that, although they have variable interest rates, we likely won't have any rate cuts this year. And if inflation continues to rise, there might be a chance of a rate hike, which could increase your APY.

Explore options quickly using this Bankrate tool:

Another reason I like HYSAs is that you can separate funds from your regular accounts. This gives you less incentive to dip into your savings for impulse purchases.

Achieve savings goals without worrying about rate cuts

If you don't want to worry about the Fed's policy and your emergency savings are at a comfortable level, another option to consider is a certificate of deposit (CD). A CD differs from a high-yield savings account in that you receive a fixed interest rate.

What I like about CDs is that they require patience and discipline, making them a smart option for short-term to immediate savings goals. I've used them, and they help me reach my goals because withdrawing money before your term ends results in costly fees, which can deplete your earnings. I dislike losing money.

Whether you're planning a wedding for your child next year or taking a vacation in two, CDs can help you reach your goals and maximize your earnings.

You can find some of the best CD rates using this Bankrate tool:

One thing to consider is that many banks automatically renew your CD. You'll have a grace period after (usually a week to 10 days) if you change your mind. Set a reminder on your phone at least a week before the maturity date to consider other options.

Accelerate your journey to retirement success

A fresh perspective not only helps with your day-to-day expenses. It can also help you determine if your current investments and contributions will help you reach your retirement goals.

On this end, a broker might be a smart option, even to review your current investments, ensure your choices align with your risk profile, and you're on track to reach your goals. Kiplinger reviewed different brokers to help you find some of the best options. Here are two worth considering:

• Fidelity: Fidelity is a perennial Kiplinger readers' favorite, thanks to its full advisory services, the lowest fees you'll find from a brokerage and a great mix of retirement planning tools.
• Interactive Brokers: Kiplinger ranked them high thanks to a great mobile app, an ample array of investment choices and educational resources. With more than 160 emerging markets, it's perfect if you're looking for international markets.

Conquer your year end goals and stay ahead of inflation

With market volatility and inflation shaping the financial landscape, reevaluating your cash strategy is essential.

Whether you prioritize the flexibility of a high-yield savings account, the stability of a CD or the growth potential of a brokerage, the objective remains the same: Ensure your cash works as hard as you do. Refrain from letting your savings sit idle; take a few minutes this week to compare rates to shield your cash from inflationary pressures.

Related content

• Are High-Yield Savings Accounts Still Outpacing Inflation?
• Kiplinger Inflation Outlook: Energy Cost Increases Not Done Yet
• The Best Budgeting Apps
• Do You Have a CD Maturing Soon? Here's What to Do Next
• Best High-Yield Savings Accounts

Question: I’ve got $10,000 from my year-end bonus, and I want to keep it safe but still earn something. Is a CD or a money market account the smarter move?

Answer: It’s a natural question to ask right now. With your bonus in hand and interest rates slipping after the Fed’s rate cuts this year, deciding where to put that $10,000 can feel surprisingly tricky.

Certificates of deposit (CDs) and money market accounts (MMAs) remain two of the safest, most popular options. Both offer FDIC/NCUA insurance, both earn interest and both protect principal. But the best choice for your $10,000 depends heavily on two things: timeline and liquidity.

Let’s break down how these accounts work today, including updated earning tables, so you can choose the smarter home for your year-end bonus.

What’s the main difference between a CD and a money market account right now?

The main difference between a CD and a money market account right now is rate certainty versus rate flexibility. A CD locks in a guaranteed APY for a set term (anywhere from three months to several years). No matter what the Fed does next month or next quarter, your rate won’t change. That predictability is valuable in a declining-rate environment like the one we’re entering.

A money market account, however, has a variable rate. APYs can adjust up or down depending on market conditions and bank pricing decisions. For savers who want liquidity and the ability to move funds anytime, MMAs offer more flexibility.

How do liquidity and access differ?

CDs restrict access while money market accounts don’t. With a CD, withdrawing before maturity typically triggers an early-withdrawal penalty. That makes CDs better for money you know you won’t need for a set amount of time.

Money market accounts allow withdrawals and transfers as needed. While some banks impose monthly transaction limits, you can generally access your cash penalty-free, making MMAs ideal for near-term goals or emergency-adjacent savings.

Are both options equally safe?

Yes, as long as you stay within insured limits. Both CDs and MMAs are insured up to $250,000 per depositor, per institution, through the FDIC (banks) or NCUA (credit unions).

In terms of safety, they’re essentially identical.

How much a $10,000 CD earns at today's best rates

CD rates have drifted down slightly following recent Fed action. But some terms like one-year CDs remain competitive.

Earnings assume interest is compounded annually.

The biggest advantage here is the certainty: once you lock in a CD, the rate is yours regardless of economic shifts. If the Fed cuts again, as many expect, today’s 12-month yields may look unusually attractive compared with what banks offer three or six months from now. For savers wanting predictability, that’s a major benefit.

How much a $10,000 money market account earns right now

Money market accounts remain competitive even as rates cool, with many high-yield MMAs still offering around 4.25% APY. Because the rate is variable, earnings calculations below assume monthly compounding and no changes to APY over the period.

What stands out is the combination of liquidity and competitive returns. While a money market account can’t guarantee the rate won’t slip, it gives you significantly more flexibility.

Many banks also offer these accounts with low monthly fees, making them accessible for everyday savers. For short-term horizons, especially under nine months, today’s best MMAs earn slightly more than comparable CDs.

Use the tool below to quickly explore and compare some of today's top savings account offers:

CD vs. money market account returns compared

Below is how the two products compare head-to-head across common savings timelines:

Across most terms, the money market account slightly outperforms the CD, with the largest edge appearing over longer periods as compounding works in its favor.

The notable exception is the one-year CD, which is currently offering elevated rates that many analysts expect won’t last. If you’re attracted to locking in one of the last remaining CD terms with a “4-handle,” this is the window.

When a CD makes more sense

A CD is most effective when you value rate protection and you’re confident you won’t need to touch the money. For people with a fixed savings goal like an insurance premium due next year, a future home improvement project, tuition savings or wedding costs, a CD gives you exact, predictable earnings without requiring active management. CDs also make sense right before a rate-cut cycle.

Locking in a higher APY shields you from the declines we often see in variable-rate products after the Fed shifts its policy stance. If you’re someone who finds peace of mind in structured savings and guaranteed outcomes, a CD delivers clarity at a time when interest rates are in flux.

When a money market account makes more sense

A money market account is the better choice when liquidity or flexibility is your priority. This is ideal for savers who want their bonus accessible at any moment whether for emergency expenses, a home repair, a flight deal you can’t pass up or simply because you prefer not to lock up your cash.

While MMAs don’t guarantee the rate won’t drift lower, they still tend to retain strong competitiveness, especially in the online banking sector where promotional APYs remain plentiful.

If your timeline is short or uncertain, or if you’re looking for a place to keep cash while evaluating potential investment opportunities, an MMA lets you earn a solid return without sacrificing access.

How to decide between the two

The simplest way to choose is by assessing your timeline and your liquidity needs. If you know with certainty that you won’t need the money for at least 12 months, a CD may offer a slightly higher return with rate protection. If you’re unsure about your plans or may need access at any point, the money market account is the safer, more flexible pick.

You should also consider how sensitive you are to rate changes. If locking in a guaranteed APY brings peace of mind, that’s a strong argument for a CD. If you’re comfortable with the variability and you prefer being able to move money freely, an MMA offers the better balance of return and accessibility.

Final takeaway

If you’ve received a $10,000 year-end bonus, you’re entering 2026 with options. Both CDs and money market accounts are safe, federally insured, and deliver attractive yields compared with traditional savings accounts.

In today’s environment, the money market account typically comes out ahead for most time frames thanks to its liquidity and strong APYs, while the one-year CD remains a standout for its combination of guaranteed yield and rate certainty.

The right choice ultimately comes down to how soon you’ll need the money, how much flexibility you want, and whether locking in a rate before the Fed’s next move aligns with your financial strategy.

Related Content:

• Why a 5-Year CD is Your Best Bet After the Fed Meeting
• Best One-Year CD Rates
• Money Market Account vs High-Yield Savings Account

Once you find a bank account you like, you rarely switch to another. The average person keeps the same account for 17 years, Bankrate found.

What causes this long-term loyalty? One reason is that switching bank accounts, especially checking accounts, can be complicated. You must update direct deposits and change every automatic bill payment you make. As a result, many people prefer not to go through the hassle of switching.

But is this loyalty costing you opportunities to earn better returns? This is where the trend of "soft switching" comes in.

Soft switching means trying a new bank while keeping your current one, with the option to close the old account later. This is something I know well because I did it, but before you rush to it or write it off, you should understand the benefits of soft switching and what to consider before making the change.

How I used soft switching to reach my goals

I was a big-bank customer for more than a decade, but as I was building up my savings, I found their interest offerings to be less than adequate. I was only earning a fraction of interest on my account holdings, so I explored the best high-yield savings accounts offered by online banks, which provided substantially higher annual percentage yields (APYs).

Instead of closing my big-bank accounts and transferring all my money to SoFi, the bank I wanted to try out, I opened a high-yield savings account (HYSA) with SoFi and left my old accounts open. From there, I set up automatic transfers from my old checking account to my SoFi savings every time a direct deposit was made.

The result? I was earning hundreds of dollars more annually with my SoFi high-yield savings account. After months of higher returns, I decided to open a checking account with SoFi as well, since it made accessing cash in my HYSA easier, and their checking account came with a 0.50% APY. From there, I closed my old big-bank accounts, completing the switch.

Why do people switch bank accounts?

If you're trying to make your money work better for you, switching bank accounts can be the smarter move in some instances. Say you have $10,000 in savings with your local bank, earning 0.02%. In the course of a year, you'll earn $2 on that account.

That's not optimal. Instead, if you take that $10,000 and open a high-yield savings account with Newtek Bank, you'll receive an APY of 4.35%. In the course of a year, you'll earn $444.57, giving you an extra $442.57 just for switching bank accounts.

Higher rates aren't the only reason people switch. Here are others:

• You've had bad experiences with your bank (high fees, poor customer service)
• You want access to better features (improved mobile app capabilities, responsive customer service)
• Avoiding fees, as some local banks offer accounts laden with them
• You want to take advantage of savings account bonuses
• You moved to a new city and don't want to use your old bank account
• Access to other accounts (CDs, money market accounts) with better returns

Reasons switching banks might not be a wise move

Switching might not work in certain scenarios. If you rely on a local branch to assist you with banking, then going to an online bank takes away that in-person help. For some, having that help is necessary to keep finances in line.

Another reason is that "soft switching" bank accounts requires considerable attention to detail. Until you make a full switch, you'll continue to manage multiple accounts from different banks, which can be overwhelming.

Only take this on if you feel comfortable managing everything. If you need assistance in this area, the best budgeting apps make it easier to manage your finances, especially if you have accounts at multiple banks.

A checklist for soft switching bank accounts

If you're interested in trying it out, here are some things you should do to make the process smoother:

• Do your research first: Ensure your new bank has an excellent reputation, offers accounts that meet your financial needs, and verify that accounts with sign-up bonuses don't come with higher fees.
• Make gradual shifts: When I started, I only opened a HYSA with SoFi and set up automatic transfers from my former checking account to fund and build it up over time. This gave me time to test SoFi's banking features, customer service and more to ensure it was a good fit for me.
• Create a list of automatic payments/deposits: This made switching my checking account more manageable because it gave me time to update everything when I wanted. I did this gradually over a few months to ensure I didn't miss any automatic payments before closing my older account. It also made the process much less stressful.
• Continue to shop around: I recommend shopping your savings account at least once per year. Doing this allowed me to find a better solution, which helped me reach some savings goals faster. You can use this Bankrate tool to find options fast:

The bottom line on soft switching bank accounts

The average person keeps their checking account for 17 years. Does that inertia cost you in the long run? It could, as many online banks offer substantially higher rates of return on savings accounts compared to their brick-and-mortar counterparts. This is where soft switching comes into play, as it allows you to try new bank accounts while maintaining your primary one.

The key is to take your time, research ample options to ensure you find the right one and make the switch gradually. Doing this makes the process less stressful and ensures you don't miss payments during the switch, while giving you access to the returns and features you deserve.

Related content

• Kiplinger's Best Internet Banks
• How To Get the Best Savings Account Bonuses
• Best High-Yield Savings Accounts

Choosing the right savings account can be the difference between maximizing your potential and missing out on hundreds of dollars in earned interest. That's why once a year, I'll shop around to ensure my savings account continues to meet my needs, and there isn't one that might be better suited for my situation.

Now is an important time for savers to shop around. The Federal Reserve cut rates twice, and it may cut them again when it meets in December. As such, choosing the right account can help you stay on course for achieving your savings goals even with diminishing returns.

With this in mind, two options to consider have some commonalities. I'll compare how high-yield savings accounts and no-penalty CDs are similar, highlight the difference between the two and which one works best for your savings goals.

How does a no-penalty CD work?

Normally, when you open a CD, you pledge to keep the money in the account for a specified time period. But what happens if you need your money before the term matures? You could be on the hook for months of earned interest, depending on your CD term.

If you're worried about tying up your cash, one solution is a no-penalty CD. A no-penalty CD comes with terms ranging from six months to a year. However, unlike a regular CD, with a no-penalty CD, you can withdraw money once you reach the initial vesting period — normally, one week to a month.

Most importantly, no-penalty CDs come with a fixed interest rate, and many banks offer FDIC insurance to protect your investment further. If the Fed continues cutting rates, it won't impact you. The rate you lock in now is the rate you'll receive through your term.

Use the tool below to shop and compare CD rates quickly, powered by Bankrate:

Is a no-penalty CD a smart move for you?

I generally recommend no-penalty CDs to savers who already feel confident in their emergency fund. A standard emergency fund typically covers three to six months of expenses, but aiming for closer to a year gives you more breathing room if a job loss or unexpected setback occurs.

The reason comes down to maximizing your earnings. When you open a no-penalty CD, you lock in a fixed interest rate for the full term. However, if you end up withdrawing the money soon after opening the account, the CD will close, and those funds are no longer earning that fixed rate.

If the Fed cuts rates again and you move that money back into a high-yield savings account, you may end up with a lower APY than what you originally locked in. In that case, you miss out on the long-term benefit of securing a higher rate today.

Another thing to keep in mind about no-penalty CDs is that each bank treats them differently. Some will allow you to withdraw the entire amount once you reach your vesting period, while others permit one withdrawal per month. Therefore, they work best for established savers who want to grow some of their earnings with minimal risk.

Do you want an account recommendation? Climate First Bank offers a six-month no-penalty CD earning 4.34% APY.

Are high-yield savings accounts still a wise option?

I believe they are. I've been reviewing rates weekly on all savings accounts and have been surprised to find that some of the top accounts haven't issued rate drops. To demonstrate, Newtek Bank offers a high-yield account with a 4.35% APY. This rate has remained the same for the past few months, allowing savers to capitalize on higher returns for longer than other banks.

HYSAs are excellent savings vehicles for savers with short-term goals (think three months or less). If you're looking to earn some money for a few months to fund a project or a vacation, they're a great option to consider.

Many online banks offer them with no account fees or minimums and FDIC Insurance, making this an exceptional choice for short-term saving goals or for those looking to grow their emergency fund.

You can quickly compare some of today's best savings offers using this Bankrate tool:

Of course, there's something you must consider with high-yield savings accounts: They come with variable interest rates.

It means that if the Fed cuts rates again, your APY will dip. However, given that it takes some banks months to respond to Fed policy, you can still maximize higher rates if you act quickly.

Here's a breakdown of different scenarios and which of these two accounts works best in each:

The bottom line on high-yield savings vs no-penalty CD

For savers with shorter-term goals or needing to build an emergency fund, a high-yield savings account remains a wise option, as you'll earn an APY that outpaces inflation. You can also use them for any funds that require immediate liquidity.

Meanwhile, if you're an established saver who's looking for a slightly longer-term option, a no-penalty CD works the best. It offers a fixed interest rate, allowing you to lock in a rate now before the Fed cuts diminish it further.

Related Content

• Best High-Yield Savings Accounts
• I Inherited $50,000, and My Retirement is Fully Funded. Where's the Best Place to Store It for Maximum Growth?
• Best No-Penalty CD Rates: Lock in Rates Over 4%

Question: I recently found out I was receiving $50,000 from a family member. My retirement is already fully funded, I have no debt to pay off, and I don't need to use the $50,000 for anything immediate. Where are some smart places to store it to keep ahead of inflation?

Answer: My first suggestion would be to invest it in an index fund since they offer historically higher returns than savings accounts. However, if you're concerned about market volatility, there are a few other solutions that would work best for you.

Depending on your savings goals, a high-yield savings account or finding the best CD rates are smart options to consider for large deposits of $50,000 or more.

Each approach helps you earn returns that outpace inflation while eliminating risk. I'll show you these scenarios to consider, depending on your investing or savings profile.

Scenario 1: I don't mind a little risk if there's a chance of a higher reward

I recommend investing in the stock market through an index fund, in the vehicle of an exchange-traded fund (ETF) or mutual fund, if you want high returns and are OK with some risk.

The advantage is diversification. If you choose an index fund that tracks the S&P 500, for example, that fund would hold the approximately 500 biggest U.S. stocks, rather than putting all your eggs in one company's basket. Index funds also have lower or no fees since they're passively managed.

There are a few considerations before diving in. First is that your return is not guaranteed. If the index performs poorly, your returns will decline, as well. As a point of reference, the S&P 500 has historically averaged about a 10% annual return.

The bigger concerns, though, revolve around timing. That 10% return is an average, meaning some years it's higher and some years it's lower or even negative. If you find yourself needing to use this money in a bad time for the market, you'll lose out on returns.

The other timing issue is the capital gains tax, which you'll have to pay on what you earned when you sell your holding: If you hold the index fund for less than a year before selling it, you'll be subject to short-term capital gains rates, which are higher.

Altogether, this means you should think carefully about whether you're OK with tying up this inheritance money for at least a year. If you're not sure, consider one of the other scenarios.

However, if you're willing to take some risk to maximize returns and are sure you'll hold the investment for more than a year, this would be a wise option.

Scenario 2: I want to park the cash and forget about it

If you're already on course to achieve your retirement goals, and you have a healthy amount in your emergency fund (at least six months of expenses), there's no reason to go with anything but a long-term CD.

While it's likely CDs won't earn you the same return as a low-risk ETF or other investment vehicle, they're lower-risk solutions for savers wanting to keep all their money. Now is the best time to lock one in, as rates are subject to change soon.

The Federal Reserve issued its second rate cut of the year at its meeting last week. Because it takes banks some time to adjust their rates, you can still find five-year CDs with rates higher than 4%.

Use this Bankrate tool to compare and find your best option quickly:

What happens if you need the cash before the CD matures? You'll pay a significant early withdrawal fee. On a five-year CD, your penalties could be anywhere from six months to one year of earned interest, equating to hundreds of dollars lost. Only do this approach if it works for your cash flow.

Recommended account. SchoolFirst Federal Credit Union has a five-year CD with a 4.15% APY. You'll make $11,272.61 in earned interest with a $50,000 deposit if you lock it in today.

Scenario 3: I want to earn a higher rate with cash flexibility

In an uncertain economy, it makes sense to prioritize flexibility. Inflation could continue to climb in 2026, and if the Fed continues to cut rates, eventually we'll reach the point at which you're not earning enough on your savings to stay ahead.

This is why I recommend a no-penalty CD. As its name implies, you'll have the flexibility to access your cash as you need it without the harsh fees. You'll need to keep your cash in for a week to a month at the start. You'll also want to pay attention to account terms, as some banks allow you to withdraw all of it after you reach the initial vesting period, while others allow one withdrawal per month.

The benefit of this approach is that you can earn a higher rate of return that'll outpace inflation. With terms between six months to a year, you'll have quick access back to your cash as well.

Recommended account. Climate First Bank offers a six-month no-penalty CD with a 4.34% APY, where you'll earn $1,073.48 in interest.

Scenario 4: I don't want to tie any money up

If you want access to your money at all times, a CD might not be the best fit. Instead, consider a high-yield savings account.

High-yield savings accounts differ from CDs in that they come with a variable interest rate. It means if the Fed decides to cut rates again, it could impact how much you can earn from one.

That said, now is an excellent time to sign up for one. I review rates weekly, and some accounts still have APYs far above 4%. Use this Bankrate tool to find the best savings account for you:

It's a great way to protect your $50,000 without having fees eat into it. Many of the best high-yield savings accounts come with no fees or account minimums. You can always sign up for a checking account to access funds quickly with a debit card, should you go with an online bank.

Recommended account. Newtek Bank offers the best rates at 4.35%, with no minimums or monthly fees. If you store $50,000 in it for a year without any rate cuts, you'd earn $2,222.86.

Ultimately, if you plan to receive a larger sum of money and have your retirement and emergency savings fully funded, these are the best options to consider. An index fund has the chance of the highest return but some risk, and of the guaranteed-return options, CDs will earn you the most over time as you can lock in rates while they're still higher.

However, it's also tempting to go with a high-yield savings account. While you run the risk of having rates lowered in the future, it also gives you flexibility to pivot to higher-earning investments if need be — or to spend the money when you decide to. Prioritizing your savings goals upfront can direct your path.

Related Content

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The Federal Reserve issued a quarter-point rate cut at its October meeting, the group announced Wednesday. This is the second time this year the Fed has cut rates, thanks in part to poor job growth. The latest jobs report showed only 22,000 jobs added in August – updated payroll data might be delayed during the government shutdown.

As you know, when the Fed cuts rates, it does make some things more affordable, such as borrowing costs on credit cards and home loans. On the other side of the coin, savers could take a hit, as APYs on savings accounts will dip slightly. That puts us in a place where the decisions you make now could have real impacts on your future yields.

But the news isn't all bad for savers. If you have $100,000 you want to put into savings for plans like a down payment on a new home, I'll show you some smart money moves to make now.

A savings approach guaranteed to generate results

If you're using the $100k to save for a specific goal in the future and don't want to put it into the stock market, a CD is going to be the best option for you. CDs have fixed interest rates. So, if you sign up for an account today and the Fed continues to cut rates, your rate doesn't change.

How much does this matter?

Say you open a five-year CD right now with $100,000, earning 4.15%. For five years, you'll receive $22,545.22 in earned interest. But if you wait until the Fed cuts rates and the banks follow suit, your APY could drop to 3.90%. At that rate, you would earn $21,081.48, $1,463.74 less than if you'd acted now.

Therefore, if you have clear intentions with your $100k and don't mind locking it up for a bit to earn more cash, now is the time to strike.

You can shop for and compare CD options quickly using this Bankrate tool:

Is long-term or short-term CD the smarter play right now?

This largely depends on what you're planning to do with the money. If you're storing a substantial sum for a specific reason, like buying a home in a few years, it makes sense to do a longer-term CD now while rates are still high.

But you need to make sure you don't need that money before the CD matures, because if you break it open before it matures, it would be expensive. Longer-term CDs come with steep fees for early withdrawal, where you could lose up to a year of interest earned, which, with the sum deposited, could equate to hundreds of dollars lost.

Another approach is to consider a short-term option. With it, you'll receive a high rate of return with quicker access to your cash. Then, if inflation continues to rise heading into next year, you'll have time to pivot to investments that could earn more.

And the best product for this approach, if you have around $100,000 to save, is a jumbo CD. Jumbo CDs work the same way as regular CDs, but the deposit requirements are much higher – usually from $10,000-$100,000.

With one, you can earn returns outpacing inflation and have access to your cash within six months to a year. Not bad for reaching short-term savings goals.

When will my savings account rates drop after a rate cut?

I've been reviewing and updating rates on CDs and high-yield savings accounts, and what I've found is that it varies depending on your financial institution. To illustrate, the best three-year CD rates used to be close to 4.28% APY; now, you're lucky to find some around 4.00%.

Meanwhile, some banks haven't changed their rates at all. I have a high-yield savings account with SoFi, and rates haven't dipped yet. The same applies to the best high-yield savings accounts.

One of our top choices, Newtek Bank, still offers gains of 4.35%. On the CD side, you can get a six-month no-penalty CD through Climate First Bank for 4.34%. But you'll want to act quickly, as rates can change overnight.

Overall, the rate environment is shifting for savers. With the Fed possibly cutting rates again before the end of 2025, now is the time to take advantage when rates are higher.

For savers with substantial deposits, making the right move now could help you save thousands more. This can help you reach your savings goals faster, without the risk of losing money.

Related Content

• How to Find the Best Jumbo CD Rates
• I Have $150,000 That I Don’t Need Anytime Soon, but I Don’t Want To Put It in the Market. What Should I Do?
• You'll Kick Yourself in the Winter if You Don't Make This Savings Move Now

Some Social Security recipients recently had to find a new way to receive their payments. The Social Security Administration phased out paper checks starting September 30, opting to send payments only electronically, except as a last resort for recipients who have no other option.

Whether you've already been receiving Social Security payments by direct deposit or if you'll be starting to receive them that way soon, it's worth taking time to consider where your payments are being deposited. This decision could earn you valuable interest — or cost you in fees and missed opportunity.

That's because some bank accounts offer generous APYs, helping you earn more money and stay ahead of inflation, while some come with high fees, which can reduce your earnings. I'll show you which options are best for optimizing your earnings.

Outpace inflation with high-yield savings accounts

One smart solution is to deposit your Social Security payments directly into a high-yield savings account. You can find high-yield savings accounts (HYSA) that'll earn you over 4.00% APY, with no account fees or minimums.

This option works best if you treat your Social Security earnings as supplemental income, since you can have it sit and earn higher interest until you need to use the funds.

What I like best about high-yield savings accounts is their flexibility. Unlike CDs, where you have to pledge your money for a specified term, you can access your high-yield savings account anytime you need.

Considerations: Many HYSAs are from online banks, not brick-and-mortar, so you would not have the option of stopping into a local location to problem-solve. If you need to use the funds, you also have to contend with transferring them to, say, a checking account, which doesn't happen instantaneously, so you have to plan.

If you're concerned about signing up with an online bank for cash access, I recommend also opening a checking account with that online bank. Look for checking accounts that offer debit cards, which allow you quick access to your cash.

And if you're interested in signing up for a HYSA, use this Bankrate tool to find the best options quickly:

Try a savings account with checking account flexibility

Another option to consider is a money market account. What makes them unique is that you'll earn an APY that rivals some of the best high-yield savings accounts, but you have more options to access your cash than you do with a HYSA.

Most money market accounts come with debit card privileges. Some also offer check-writing capabilities. This way, you don't have to contend with paying ATM fees or waiting for transfers if you need access to your money.

Considerations: Many money market accounts have monthly transaction limits. If you exceed them, the bank can decide to decline the transaction or approve it and charge you a fee.

As such, only use a money market account if you don't plan to make many purchases on the account. Another thing to consider is that these accounts have monthly fees if you don't meet the minimum balance requirement – think $1,000 or more.

Can I use a local bank?

If you don't want to give up banking with your local branch, I don't blame you. There's a personalization there that's hard to come by with online banks. Plus, it can be a great undertaking to switch your bank accounts.

By that same token, many brick-and-mortar banks don't offer the same level of returns you can receive with an online bank. For example, I checked the savings rate with my local PNC Bank. For balances $1,000-$2,499, I would earn 0.02% APY. Anything above that earns me 0.03% APY.

By comparison, Newtek Bank has a high-yield savings account that earns 4.35% APY. Choosing this option, especially if you have $10,000 in the bank or more, ensures you earn hundreds of dollars in interest annually. So, if you do decide to go with a traditional bank, look for one that offers high-yield savings accounts, or else accept that you'll lose out on some money.

Considerations: Sometimes, it makes sense to stay with your local branch. If you have an aging parent who relies on a personal banker to help them with bill payments and budgeting, then I wouldn't recommend switching.

Some local banks also offer savings account bonuses, where you can earn hundreds of dollars for opening an account, setting up direct deposits of your Social Security check and keeping that account open for at least a few months. Use this in the interim if you can, but know eventually you'll need to switch to a savings account with a higher APY to keep your earnings growing.

The bottom line on where to deposit your Social Security check

With almost all Social Security recipients receiving their checks electronically, choosing the right bank account is vital. By selecting one that offers no account fees or minimums, with higher APYs, you're allowing your money to continue to grow to outpace inflation.

This is why high-yield savings accounts continue to be the best option to consider. However, if you want more flexibility in how you access your cash, money market accounts give you more ways to do so, while also earning far more than your local branch will pay you.

Related content

• Social Security Payment Schedule for 2026
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• Six Changes Coming to Social Security Next Year

Knowing where things head can help you plan where to store your money. The Federal Reserve cut rates at its September meeting, and the smart bet is they will again when they meet later this month.

Why are they cutting rates? The jobs reports indicate a significant cooldown in hiring, with only 27,000 jobs added in the last four months. And one way to stimulate employment is with rate cuts, since it lowers borrowing costs for companies.

Meanwhile, savers must navigate a future with lower returns. Thankfully, if you have significant cash (think $10,000 or more) to store somewhere safe, there are some smart options to consider.

Use a CD to shield against future rate cuts

A certificate of deposit is one surefire way to fight back against rate cuts. CDs offer fixed interest rates, so from the minute you sign up and fund the account through its maturity date, you'll receive the same rate of return.

Now, the question becomes which CD works best for you? Long-term options, like the best five-year CD rates, offer returns outpacing inflation.

Our top choice, SchoolsFirst Federal Credit Union, has a 4.15% APY. With a $10,000 deposit, you'll earn $2,254.52. Not bad for a risk-free option.

Using this Bankrate tool, you can compare and find the best CD options fast:

But there's a catch with long-term options. If your finances change in the future and you need access to that cash, the penalties for breaking open the CD can be steep. How steep? You could lose between six months to a year of interest earned. That's potentially hundreds to thousands of dollars.

Therefore, you want to make sure you can part with cash for that long. And if you don't, short-term options could be a better solution.

Grow your savings with flexibility

Thankfully, CDs come in shorter terms too. For savers with larger deposits (think way more than $10,000), I would recommend a jumbo CD. A jumbo CD works like a regular one, only you have to deposit at least $25,000 to $100,000.

What I like about them is that you can earn a lot of money in a short time. To demonstrate, EFCU Financial has a jumbo CD that earns 4.35% APY for one year with a minimum deposit of $100,000.

In that one year, you could earn $4,350 in interest with a $100,000 deposit. Just as important, you have access to your cash in a year. That means if inflation continues to rise, you have the opportunity to switch to other investments that might offer a better return than a CD.

Along with CDs, a high-yield savings account could also be a smart move. The best high-yield savings accounts come with returns outpacing inflation for now, no account fees and quick access to your cash whenever you need it.

You can find the right account for you by using this Bankrate tool:

However, I would caution keeping your money in one long-term. These accounts feature variable interest rates, meaning when the Fed cuts rates, your returns are lower. And with one to two possible rate cuts happening before the end of 2025, the APYs on HYSAs could nose-dive, creating a situation where you're barely keeping ahead of inflation.

Ultimately, the changing landscape of upcoming rate cuts and inflation will impact savers. If you have an emergency fund established and have significant savings you want to offload, then choosing a secure option now helps maximize earnings while rates are still high.

And the best way to do this is with a CD. CDs offer some protection from rate cuts, allowing you to strike while the iron is hot. Just remember to choose a term that works best for your cash flow, so you avoid costly early termination fees.

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If you noticed that you're not earning as much on your savings accounts, you're not alone. Lower savings and CD rates will likely continue.

The Federal Reserve didn't like the job numbers, prompting it to cut rates for the first time this year at its September meeting. They are expected to meet again later this month, with the markets anticipating another quarter-point rate cut.

As you know, when the Fed cuts rates, the APYs on all savings accounts decrease. However, even with rate cuts, there are smart options to grow your money and stay ahead of inflation.

I'll show you a simple two-step savings strategy that can help you reach your savings goals. And if you time it just right, you won't lose money.

Build an emergency base with high-yield savings

Even with lower APYs, high-yield savings accounts still help you earn a return that outpaces inflation. This is important because you might not be in a position where you're comfortable tying up money for years in a CD.

And that's one of the perks of a HYSA. They offer you access when you need it without having to pay early withdrawal fees. However, one critical aspect to note moving forward is that these accounts have variable interest rates.

The Fed is likely to cut rates at its next meeting, which could cause these yields to slip a bit and reduce your earning power. That said, they still make a great account if you're looking to build an emergency fund or just want quick access to your cash.

Explore and compare some of today's best rates quickly using the Bankrate tool below:

Before opening an account, here's a checklist on how to approach this:

• Search for no-fee options, as they typically don't require minimum balances or deposits.
• Switch your checking account to the online bank you use for HYSA. I use Sofi's checking and savings accounts, which allow me quick access to my cash if I need it.
• Refrain from using local banks unless they have savings incentives, such as bonuses for opening an account. Most won't offer returns anywhere near what you can receive with an online bank, and some of these accounts come laden with fees.
• Once you have a comfortable emergency savings built up, be ready to switch strategies.

CDs remain the best risk-free option for established savers

Meanwhile, if you have built a healthy emergency fund and want a risk-free place to park your funds, consider a certificate of deposit.

Why? Because it features fixed rates. Say you sign up for a one-year CD today. Even if the Fed cuts rates two more times, it's not going to impact you. This is integral if you're looking to maximize your earnings.

Explore some of today's best CD rates using this Bankrate tool:

Similar to HYSAs, there are a few things to consider with CDs:

• If you haven't used one before, start with one with a shorter maturity term. CD terms can be as short as a month, helping you determine if your cash flow can handle it.
• Banks base prepayment penalties on your CD length. It means a five-year CD could have early withdrawal penalties of six months to a year of interest earned. Only sign up for one of these if you feel comfortable not having cash until the maturity date.
• Many banks auto-renew CDs. Therefore, set a reminder a week or two before the maturity date, so you have time to determine where you want to put the money next.
• CDs work best only after you've reached or are on course to reach your investing and emergency savings goals.

How much do rate cuts impact earnings?

I've been watching savings and CDs since the Fed's September announcement, and for the ones that have changed, the dip has been between 0.10%-0.30% APY.

If you're a short-term saver, it's not going to impact your earnings as much as, say, someone wanting a five-year CD.

On this end, the longer you plan to use a CD, the more at risk you are to lose money if you don't lock it in before the next rate cut.

For example, a $50,000 deposit in a five-year CD at 4.00% APY earns you $10,832.65. However, if you wait for a few rate cuts to happen at the October and December Fed meetings, that APY could dip as low as 3.50%.

At this rate, for five years, you'd earn $9,384.32, a loss of $1,488.33. Therefore, timing matters substantially when you choose to lock in a CD.

Overall, now is the time for established savers to capitalize on higher CD rates. Doing so ensures you maximize your returns with higher rates before the next Fed meeting later this month.

Conversely, if you need to build your savings, a high-yield savings account is still the smart play. You'll earn rates above 4%, and even with future rate cuts, your earnings keep you ahead of inflation.

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Question: I have $150,000 that I don't need anytime soon, but I don't want to put it in the stock market. What should I do?

Answer: If you're looking for a risk-free place to store your money, my best solution is a jumbo CD. Jumbo CDs come with FDIC insurance up to $250,000 and APYs that'll outpace inflation.

However, there are a few things you want to consider before signing up for one. I'll cover key considerations, how much you can earn and why now is the right time to get one.

How does a jumbo CD work?

A jumbo CD is a type of savings account that requires a large deposit, typically between $10,000 - $100,000. Similar to regular CDs, you'll open an account with an initial deposit and let it grow through its term.

If you need to withdraw it before the maturity date, you'll have to break your term. Doing so results in significant penalties, reducing the interest you'll earn on your investment. The longer your CD term is, the higher the penalties you'll incur.

What's beneficial about jumbo CDs is that they require shorter terms of six months to a year, so you'll have quick access back to your cash. Explore and compare options quickly using the tool below, powered by Bankrate:

Things to consider before signing up for one now

Along with making sure you can keep your money tied up in one place, you'll also want to shop around to ensure you're receiving the best rate of return.

Traditional banks usually cannot compete with online banks. Online banks don't have brick-and-mortar locations, meaning they don't have the overhead expenses, so they can offer more generous returns. While accessing your cash at the end of the term can be trickier, online banks allow you to transfer money to other accounts.

Keep in mind that many banks autorenew CDs. Set a reminder on your phone a week before the maturity date so you can explore other options, reinvest in the same CD, or cash out if rates are much lower.

Why should I sign up for one now?

The Federal Reserve issued its first rate cut of 2025 at its September meeting. When the Fed cuts rates, it lowers the returns savers can earn on all savings accounts, including jumbo CDs.

How much does a cut impact rates? Before the Fed meeting, My eBanc had a one-year jumbo CD with a 4.45% APY. After the cut, the rate is down to 4.15% APY. That 0.30 percentage-point dip may not sound like much, but on a $150,000 deposit, it’s the difference between earning $6,675 and $6,225 over 12 months — a $450 gap.

While many savings products fall when the Fed lowers rates, CDs stand out because their interest rates are fixed. That means locking in a jumbo CD now protects your return when the Fed cuts rates again, which they're projected to do this week at its October meeting.

Therefore, locking in a rate now ensures you're maximizing your savings potential, without any of the risks that the stock market offers. While you might not be able to earn as much as you would with investments, jumbo CDs can deliver substantial returns.

How much can I make with a jumbo CD?

One of our top choices is Finworth. Finworth offers a six-month jumbo CD with a generous APY of 4.10%. Parking your $150,000 there for six months earns you $3,557.44 in earned interest. Not bad for a short investment.

A longer-term option is Prime Alliance Bank. It offers a one-year jumbo CD with a 4.15% APY. Depositing $150,000 into it earns you $6,225 in one year.

On the fence about which terms sound the best for you? My solution is to find what works best for your financial goals.

If you don’t need access to your money for a while, consider locking it into the longest jumbo CD available. Doing so guarantees you earn the highest rates of return to maximize yields.

Meanwhile, if you're unsure about tying up your money that long, opt for a short-term option. I often use short-term CDs as a way to stay on track with savings goals, and they consistently help me achieve them.

Ultimately, while savings APYs took a slight dip from the Fed cutting rates, you can still earn an exceptional return with a jumbo CD. With rates around 4% for both short-term and longer-term options, you'll earn thousands of dollars effortlessly with a $150,000 deposit.

The key is to lock them in now before the Fed cuts rates again this week. If you do, you'll stay ahead of inflation while having access to your cash quickly, which you can reinvest in another CD or consider other options that work best for your financial goals.

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The ripple effects of each Federal Reserve meeting reach far beyond Wall Street. They shape the rate on your mortgage, the growth of your savings, and even the value of long-term investments.

Ahead of the September Fed meeting, mortgage rates dropped to their lowest level since October 2024. The average 30-year fixed rate slipped below 6.5% for the first time in months, thanks to cooling inflation and growing confidence that the Fed may begin cutting rates in the coming quarter.

The reaction was immediate: refinance applications spiked nearly 60% last week — the sharpest increase in more than two years. As rates shift, understanding who stands to benefit and who may lose ground is the first step in adjusting your financial strategy.

The big winners: Homeowners and buyers

Falling mortgage rates are a welcome break for homeowners who took out mortgages during the peak-rate periods of 2022 and 2023. For those with rates above 7%, today’s environment opens the door to consider refinancing into lower monthly payments.

That relief can free up hundreds of dollars per month, offering a much-needed buffer against other rising costs like groceries, insurance and energy.

Homebuyers also stand to benefit, at least in theory. Lower rates slightly boost affordability by reducing monthly payment burdens, making it easier to qualify for a mortgage. However, inventory remains tight in many markets, and prices are still elevated. This means buyers may find some relief but not a complete reset of the housing affordability crunch.

Curious about today's rates? Explore and compare some of today's best offers with the tool below, powered by Bankrate:

The losers: Banks, investors and savers

Not everyone wins when rates fall. Banks and investors holding older mortgage-backed securities (MBS) face losses as new loans enter the market at lower yields. As older, higher-interest loans get refinanced, the value of those securities drops, reducing bank profitability and potentially affecting investor portfolios with heavy exposure to mortgage debt.

Savers, too, may feel the downside. If the Fed signals a pivot to rate cuts in response to softening inflation and economic data, banks will likely lower yields on CDs and high-yield savings accounts.

For consumers relying on those accounts for a reasonable return, the recent gains in interest income may start to decrease. The era of 5% savings rates could be short-lived if broader rate cuts materialize.

Browse some of today's best savings account offers with the tool below, powered by Bankrate:

What it means for your financial strategy

When interest rates shift up or down, it sends a ripple effect across nearly every aspect of your personal finances. That’s especially true when mortgage rates move sharply. If you're a homeowner, a buyer, or someone with money in savings, now’s the time to pause and ask: What should I do differently?

Here are a few options to consider.

Refinance math: When it makes sense.

If you have a mortgage with an interest rate at least one percentage point higher than current offerings, now is the time to run the numbers. Just make sure you factor in closing costs, loan term changes and how long you plan to stay in the home. Refinancing isn’t always a slam dunk, but for many, it could mean real monthly savings.

Diversifying savings if yields fall.

If CD and high-yield account rates start to decline, look into laddering strategies or short-term Treasury bills to lock in higher yields while they last. Consider moving a portion of savings into I-bonds or other inflation-protected assets if you’re worried about losing ground.

Big picture: why every rate move creates both opportunity and trade-offs.

Whether you’re a homeowner, a saver or an investor, every rate change reshapes your financial landscape. With another decision coming in October, now is the time to revisit your strategy, weigh the trade-offs between borrowing and saving and make adjustments that support your long-term goals.

Falling mortgage rates can provide relief for homeowners and buyers but they also bring challenges for savers and financial institutions. Instead of seeing these shifts as purely good or bad, treat them as a signal to reassess and realign your money decisions.

Related Content:

• My Mortgage Rate is 6.5%. Should I Refinance If Rates Fall By Half a Point 
• Find the Best 30-Year Mortgage Rates Today
• How Much Does It Cost to Refinance a Mortgage and Other Questions to Consider

In the midst of the hoopla surrounding a rate cut, it doesn't diminish the fact that some savings options are still excellent choices to consider. APYs on all savings products will likely dip slightly following the Fed's decision to cut the federal funds rate, but it doesn't mean you can't earn a good return.

If you're sitting on $40,000 and want a risk-free way to grow your money, CDs and high-yield savings accounts are smart options to consider. Both offer you guaranteed returns thanks to FDIC protection up to $250,000.

With these things in mind, here's how much you can earn by saving $40,000 with each account. I also cover the three things you should consider before setting up an account, and which option works best for different risk profiles.

How much can you earn with a $40,000 deposit?

Let's start with why so many savers turn to these two options: They generate a healthy return effortlessly. If you were to open a high-yield savings account with one of our top choices, Newtek Bank, you would earn a 4.35% APY.

Now, that's sure to drop in the near future if the Fed starts cutting rates. However, even with a slight dip, you'll still outpace inflation. And if you store $40,000 in this account, here's how much you can earn in interest with the 4.35% APY:

• 1 year: $1,750
• 2 years: $3,559.69
• 3 years: $5,450.36
• 4 years: $7,427.25
• 5 years: $9,490.55

Therefore, you can earn almost $9,500 effortlessly by parking your money in a high-yield savings account for five years. If Newtek Bank isn't the right choice for you, you can use this Bankrate tool to find savings options that align with your needs:

Now, let's turn our attention to CDs. The best CD rates are usually short-term, think six months to a year. You can also earn a robust return on long-term CDs. Lafayette Federal Credit Union offers a five-year CD with a 4.28% APY.

If you put $40,000 in a five-year CD with Lafayette, you could earn $9,324.77 in interest for doing nothing. It isn't as much as you would earn with a high-yield savings account on the surface, but CDs also have another perk we'll discuss in a minute.

If you don't want to lock in a long-term CD, you can shop for the best options using this Bankrate tool.

Before signing up for either account, here are three things smart savers should know.

1. APYs will change

With the Federal Reserve potentially cutting interest rates, it lowers the returns you'll earn on a CD or high-yield savings account. The difference is that with a CD, you can lock in your rate now and maintain it through the term. CDs feature fixed interest rates, so if the Fed cuts rates again in the future, locking one in now maximizes your returns.

Meanwhile, high-yield savings accounts feature variable interest rates. It means if the Fed follows with another rate cut, it will lower how much you can earn.

APYs are not the only thing to consider when choosing between these accounts. Another option concerns how comfortable you are with not having access to your cash.

2. Do you need liquidity?

Typically, my savings strategy involves keeping my emergency fund in a high-yield savings account. That way, if an emergency arises, I can transfer funds and have quick access to my money.

CDs don't share that same luxury. The term you lock in the bank expects you to fulfill. I use CDs for short-term savings goals because they can keep you on track since you can't withdraw your money without a penalty.

If you haven't used CDs before, here's what I recommend: Start by tucking some money away in a short-term one, think three to six months. Doing so allows you to maximize returns while rates are still high and you'll have quick access back to your cash.

Another option is to consider a no-penalty CD. As its name implies, you can withdraw money once you reach the vesting period. Depending on the bank, it is usually one week to one month after you open it.

3. How long are your savings goals?

Another key consideration is how long you want to store your money in one of these accounts. With high-yield savings accounts, you're free to make changes anytime you need to, whether it's one month or 10 years into the future.

That's a nice perk to have, as you can pivot to other strategies fast. The same doesn't apply to CDs.

Unless you choose a no-penalty CD, you're locked into your term. The good news is you don't have to worry about your rates changing, but you're also sacrificing access to that money until your term expires.

Say you lock in a five-year CD, but in year three want to move more of your money to an investment account. With a CD, you can do so, but breaking it open requires months of interest earned in penalty fees, losing you money in the process.

Therefore, pay close attention to your savings goals and ensure the account you choose meets them.

What's the best savings strategy for me?

It depends on your needs and savings goals. This table breaks down how each account differs:

High-yield savings accounts are for short-term savers who want to build an emergency fund or need quick access to their cash. CDs work best for established savers looking to park a chunk of their money and forget about it until the term expires.

In either case, both of these accounts can help you reach your savings goals. The key is paying attention to your savings needs and choosing the right account to match them. Doing so helps you outpace inflation while earning a robust return.

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The September Federal Reserve meeting is right around the corner. On September 16-17, members of the Federal Open Market Committee will determine if the dwindling job reports will be enough incentive to cut rates for the first time this year.

The CME FedWatch is 92% certain that a rate cut of 25 basis points will happen this month. When the Fed does cut rates, it will impact savers. If you have money in a high-yield savings account, you'll likely see a slight reduction in APY, as this can occur days to months after the Fed's announcement, depending on your financial institution.

However, savings rates have far exceeded 4% for a long time now. And even with a slight reduction, they'll have you outpacing inflation in the meantime. With this in mind, here's where I'm parking my money.

Set a base with an emergency fund

I'll be honest, I like to have flexibility in accessing my cash. It's why I use high-yield savings accounts to build emergency savings. What I like about them is that they're very easy to set up, they come with FDIC insurance up to $250,000 and you'll earn a healthy rate of return for risk-free options.

Circling back to the cash access, a high-yield savings account also allows me to pivot when I want to invest in something else. If inflation continues to creep up (grocery and energy prices are obscene right now), it gives me a chance to capitalize on riskier ventures that also offer a potentially better return.

With this in mind, if you're a saver who doesn't mind tucking money away, but you also want access to it quickly, use this Bankrate tool to find the best options fast:

My tip: Once you’ve built your emergency fund, consider separating it from other savings so you’re not tempted to dip into it. This way, your safety net stays intact, but your surplus dollars continue earning more while staying relatively liquid.

Lock-in a higher rate now

A certificate of deposit is a smart approach for established savers who don't mind tucking their money away and forgetting about it for months to years. I've used CDs in the past for short-term savings goals, and they do a great job of keeping you on course to meeting them.

The reason? They come with penalties if you withdraw before the term expires. And I don't like losing money.

Right now, my family has a few short-term savings goals, such as home renovations we want to do before putting it on the market. For this reason, I'll take a portion of my savings and devote it to a CD.

Compare some of today's best CD rates with the tool below, powered by Bankrate:

My tip: As I mentioned before, I like having access to my cash. So, there's a cheat code with CDs you can do to achieve both the benefit of locking in a higher rate now, with cash access should you need it moving forward.

A no-penalty CD is the Goldilocks of savings options. You can sign up for one now to lock in a great rate before the Fed lowers them. And after an initial funding term of one week to a month, you can withdraw your money either all at once or make occasional withdrawals once per month without any fees.

Here's where I wouldn't park my money right now

There are other savings options I won't touch for several reasons. One of which is a savings account from a traditional brick-and-mortar bank. Don't get me wrong, it felt like Cheers every time I went into my local branch. However, they don't offer rates anywhere close to what you receive with online banks.

I would also caution against using money market accounts. They work best for established savers who feel comfortable maintaining average daily balances above $1,000. If you're trying to build your savings or don't feel confident you can hit that target regularly, you'll likely pay monthly fees, which can offset any interest earned.

The other thing about MMAs is that they come with transaction restrictions. If you plan to write checks on the account or use debit cards, know that many banks will limit it to six transactions per month. Any transactions exceeding this limit could cost you, again negating some of the interest earned.

Ultimately, the market will soon change for savers. And even with the reduced rates, a high-yield savings account will help you earn more than inflation takes, with quick access to your money.

Further, if you have some short-term savings goals and can part with some cash, consider a CD right now. Locking them in before September 17 ensures you receive the highest rate.

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Inflation continues to take significant bites out of household budgets. February's inflation rose by 2.4%. David Payne of the Kiplinger Letter notes this will likely be the smallest increase this year.

Why? Because the war in Iran spiked gas prices by 20%. In turn, it means the costs of everyday goods will increase as well.

Even if the war ends soon and gas prices drop, Payne believes inflation could rise to 3.0% by the end of the year due to healthcare costs and the impact of tariffs on prices. For savers, finding the right account is imperative to keeping ahead of rising inflation.

Do savings accounts really outpace inflation?

If you open a savings account at a brick-and-mortar bank, chances are you're going to be disappointed. Traditional savings accounts offer an average APY of 0.6%, well below inflation's projected 3.0% rate by the end of 2026.

However, the best high-yield savings accounts offer much healthier returns. Some of our top options, such as this one from Newtek Bank, give you a return of 4.20%, well above the inflation rate.

Another perk is that many high-yield savings accounts come with low deposit requirements and no monthly fees. This helps you keep more of your money, which is integral given inflation's impact.

How much can I earn with a high-yield savings account?

Let's take our top pick, Newtek Bank, which earns 4.20% APY. Here's how much you would earn in one year for opening the account today:

• $10,000 deposit: $428.92 in interest
• $25,000 deposit: $1,072.30 in interest
• $50,000 deposit: $2,144.60 in interest
• $100,000 deposit: $4,289.20 in interest

As you can see, this approach could help you earn significant gains effortlessly. This calculation assumes there will be no rate cuts from the Federal Reserve in the next year.

While that's likely, given the weak job numbers, we don't know what the future holds, especially with a new Fed chair, Kevin Warsh, taking over in May, pending Senate approval. This is important because high-yield savings accounts come with variable interest rates, meaning that if the Fed resumes cutting rates under Warsh's helm, it will also drop your rate of return.

What savings alternatives should I consider?

If you're worried that rate cuts will eat into your earnings, another approach is to open a certificate of deposit. Unlike HYSAs, CDs feature fixed interest rates.

It means that if you lock in your rate now and the Fed cuts them later this month, it won't affect you, since you have your rate locked in.

You can shop quickly for the best CD rates, using this tool, powered by Bankrate:

There are a few things to keep in mind with a CD. First, many come with terms that won't allow you to withdraw your money until it reaches maturity. If you need cash before that time, your penalties could be months of earned interest, negating its benefit.

You can't add to your balance the way you would with a high-yield savings account, so CDs are best suited for a lump sum you won't need for a while — letting you lock it into a risk-free vehicle that outpaces inflation.

Another option is a money market account. These are better-suited for established savers, as many accounts require a minimum balance of $1,000. In many ways, these accounts offer the best perks of checking, in that you can access your money anytime you want with a debit card.

Moreover, you'll gain all the perks of a savings account, including returns as high as 4.00%. This will also allow you to earn more money than inflation takes. However, as with high-yield savings accounts, money market accounts have variable interest rates. If the Fed cuts rates sometime soon, it could lower your returns.

If you're on the fence about savings options, this table can help:

Overall, there are several ways you can save money and stay ahead of inflation. High-yield savings accounts are the easiest, as they have the fewest restrictions and take only a few minutes to set up.

Best of all, with rates as high as 4.20%, you'll earn a rate outpacing inflation, even if the Fed cuts rates later into 2026 and savings APYs drop. Therefore, if you're feeling the squeeze of inflation, the right savings accounts can help lessen its impact.

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When the Federal Reserve gathers for its upcoming September meeting, it might do something it hasn’t done since December — implement an interest rate cut.

At this point, economists and Wall Street alike are pretty convinced that a rate cut is coming. While it might not be a drastic cut, it could have an impact on many consumers’ finances.

As a retiree, you could be wondering what moves to make — or not make — ahead of the Fed’s upcoming September 16-17 meeting. Here are a few things to consider.

Consider your liquidity needs

It’s common for retirees to put money into longer-term bonds and CDs for stability and income. You might be inclined to rush into a long-term CD or bond ladder, given the potential for a September rate cut.

Rachel Gustafson, CFP, CCPS, and investment adviser representative at Financial Investment Team, says that might not be necessary.

“If the Fed does cut rates, we anticipate short-term rates to drop and long-term yields to remain close to where they are now,” she says. “Locking in longer-term rates may seem like the safe bet, but the smarter play is aligning with your liquidity needs.”

What Gustafson suggests is that, above all else, you have enough cash to cover your expenses for the foreseeable future. She also recommends that you not rely too heavily on investments in case there is a negative market event.

“In the next one to three months, high-yield savings accounts are the way to go,” she says. “Many are still paying 4% or more. For funds beyond three months, U.S. Treasuries and short-term CDs are the preferred route, even in light of upcoming Fed rate changes.”

If you’re not sure whether to focus on Treasuries vs CDs, think about your tax situation. Interest earned from U.S. Treasuries is tax-exempt at the state and local level. Even though some CDs might be offering better rates than Treasuries right now, you’ll need to consider the after-tax yield — especially if you’re in a high-tax state.

Choose your bonds strategically

Some retirees might be inclined to load up on bonds in light of a probable rate cut. Joseph W. Spada, CFP and private wealth adviser at Summit Financial Holdings, says that’s not necessarily a bad idea. However, it’s important to choose your bonds carefully.

"When rates drop, bonds that are currently on the market with higher coupons become more attractive, causing their price to rise,” he explains.

“Longer-term bonds that have more years remaining of higher coupon payments are especially attractive, causing their price to rise even more," Spada says. "For this reason, intermediate- to long-term bonds tend to perform well in a decreasing interest-rate environment.”

That said, Spada thinks stocks can also be a powerful tool for retirees at a time such as this, despite their inherent risk.

As he explains, when rates drop, "Companies can borrow at a lower rate and earn a better return on that borrowed money by investing it in their business. This is why it is important to own stocks when interest rates are declining.”

If you’re worried about volatility, you can aim for a mix of growth and dividend-paying stocks in your portfolio.

Make sure your portfolio is resilient and tax-efficient

Though you might be inclined to make major changes to your investment strategy to benefit from rate cuts, Gustafson says that might not be necessary.

“At this point, we don't see an immediate need to adjust portfolios ahead of the Fed’s upcoming decision,” she says. “The goal is not guessing the Fed’s next move. It’s about building resilience. Focus on building a portfolio that will hold up in any rate environment, not just the one that is making headlines.”

Spada agrees. "We advise our retired clients to focus on the total return … not just how much income each investment can produce,” he says. He also thinks tax efficiency needs to be part of the equation.

“Investments with high yields, such as CDs and corporate bonds, are often taxed at ordinary income tax rates and can have lower total returns,” he says. “Growth-oriented investments, like stocks, often benefit from more favorable capital gains tax treatment, reducing a client’s overall tax burden, as well as generating higher total returns."

All told, if you have an investment strategy that’s been working for you all along, you might not need to alter it tremendously to account for the Fed’s upcoming decision.

"Overall, we don't recommend trying to time interest rate moves,” Spada insists. A better approach might be to look at your portfolio holistically and make sure it’s well-balanced and designed to withstand market fluctuations.

Don’t get too caught up in the short term. Even with an interest rate cut looming, Spada insists that thinking long-term is still your best bet.

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Question: I have $50,000 saved. Where should I park it before a rate cut could happen?

Answer: You'll want to find a savings solution that's resistant to rate cuts. That way, you maximize your savings while rates are still higher. Thankfully, you have some time to act.

The Federal Reserve didn't cut rates at its January meeting, and is unlikely to do so again when it meets this week. With weak job numbers and inflation rising due to increased gas prices, the Fed is in a wait-and-see mode, giving savers some time to capitalize on higher rates.

A way to maximize returns and shield against future rate cuts

If you're looking to protect your cash from rate cuts, a CD is a smart option.

A certificate of deposit (CD) features a fixed interest rate. Once you lock in your CD rate, it remains in effect for the entire term. The Fed could cut rates multiple times during your term, and it wouldn't impact your savings at all.

Using this tool, powered by Bankrate, can help find options that work best for your needs:

But if you are sitting on a wad of cash, a balanced savings approach can maximize yields now while granting flexibility for future investments.

A strategy that keeps you ahead of the game, with flexibility

One strategy is to open multiple CDs at various terms. Doing so now ensures you lock in higher CD rates to maximize returns. But it also achieves another positive: You'll gain quick access to some of your money.

Here's how it works:

• Put $25,000 in a one-year CD. A top-performing account we found is Limelight Bank. You'll earn 4.10% with a minimum deposit of $25,000. In that year alone, you'll earn $1,025 effortlessly.
• Deposit $20,000 into a five-year CD. Our top pick is SchoolsFirst Credit Union, with a rate of 3.90%. Over five years, that'll earn you $4,216.30.
• Lastly, place your remaining $5,000 into a no-penalty CD. Farmers Insurance Federal Credit Union offers a rate of 4.00% for a nine-month term. This will net you $149.26 in interest earned for a mere six months.

Overall, this approach helps you earn $5,390.56 for a few minutes of work setting up the accounts.

Best of all, you'll only tie up half of your money for the next five years. The rest you'll have back within the year, and you can reconsider investment or savings options, depending on how the market does.

What I would caution with this approach

CDs are generally not a flexible savings tool. Term-based CDs require you to store your money until maturity, or face substantial withdrawal fees. For shorter-term CDs of a year or less, this could mean losing a few months of interest.

For long-term CDs of five years, this could mean penalties equivalent to up to one year's interest. Only consider this option if you're comfortable locking away $25,000 for five years.

Ultimately, the Fed is unlikely to cut rates when it meets this week. In fact, they might not lower rates again until fall. However, you can adopt strategies that help maximize returns now, while rates are high. This approach keeps you aligned with your goals, regardless of the Fed's future actions.

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Not long after Monique Showalter had her two sons some 40 years ago, her mother set the tone for how to save for the college education of all her grandchildren.

“She told us, ‘I’ll pay the college tuition and you guys pay for everything else,’ ” Showalter said. “We still had hefty college bills for room and board and all, but it really helped.

“That set a precedent, and I thought ‘I’m going to do that for my grandchildren,’ ” she adds. Today, with five grandchildren ages 3 to 12, and a sixth on the way, she's been socking away about $10,000 a year per child.

She’s not alone. Baby boomers are the most well-heeled group of Americans, holding $85.41 trillion in wealth, according to the Federal Reserve. With that kind of moolah, many are choosing to transfer some of that wealth to their grandchildren while they’re still alive and kicking, says Susan Hirshman, director, Wealth Management for Schwab Wealth Advisory and Schwab Center for Financial Research.

“Years ago, all anyone wanted to talk about was, ‘How much money can I make?’ ” she says. “Now the conversation is more about, 'What do I want to use my wealth for?' and we’re talking a lot about their legacy while they’re still alive and seeing the benefits.”

Education for grandchildren has become a priority, she says. There are a handful of ways grandparents can help foot the bill totally or partially to fund a grandchild’s education, but financial advisers are quick to warn: Don’t drain your retirement fund to do it.

“You can finance education. You can’t finance retirement,” Hirshman says.

1. Let’s get started

Rule No. 1: You have to make sure you're saving correctly for yourself first, accounting for your lifestyle and future wants and needs, as well as having an emergency fund in place and reserves to cover medical and other unexpected needs. No one wants to outlive their finances.

2. The talk

Rule No. 2 is communication with the parents, says Hirshman. “You need to understand what their plans are and how your plans and their plans meet,” she says. “Maybe parents don’t want you to do it or have other ideas.” Know, too, that some steps you might take to help fund college could affect financial aid eligibility for parents or the grandchild.

3. Should you just write a check?

Yes, that's an option. But it’s not the smartest choice when it comes to taxes. If you don’t care about tax deferrals and incentives, remember that the IRS has gift-giving rules. You can bypass those exemptions by writing the check directly to the school, according to the IRS, but that applies only to tuition.

4. The 529 plan

Let’s turn to tax-free options. The most common savings approach is the 529 Plan. These accounts allow you to add as much as $19,000 each year, equal to your full annual gift exclusion, without being liable for capital gains taxes when withdrawing for qualified education expenses.

Contribution limits and deductions vary from state to state, and you’re allowed to have 529 plans in more than one state. The IRS won’t be involved unless you exceed the annual gift allowance. There are no federal tax deductions, but many states offer deductions for in-state plans.

Besides tuition, those funds can be used for fees, books, computers and supplies, as well as tutoring, studying abroad or post-secondary education and more. They’re transferable to another beneficiary, such as a younger sister or cousin.

5. Custodial accounts

This is another savings account path with terrific pros and some serious cons to opening them for children. Under the Uniform Gifts to Minors Act (UGMA) and the Uniform Transfer to Minors Act (UTMA), these accounts allow anyone to contribute cash, stocks, bonds, CDs and several other securities with no limits to the total funds held in the qualified education expenses-only account.

Grandparents — actually, anyone — can contribute as much as the $19,000 annual gift tax exclusion per child, without encountering the attorney fees and other associated costs tied to trusts. But these are taxable investment accounts, and the grandparent is the custodian of the account until the child reaches adulthood. The assets then transfer to the beneficiary, who can use them however they wish. College? Maybe not.

“We’ve all heard the story of the kid saying, ‘I know you wanted me to go to college, but I'm going on a motorcycle trip across Africa instead,’ ” Hirshman says.

6. Coverdell accounts

The Coverdell Education Savings Account is much like a 529 plan, but with income and contribution limits that might offer a good starting point for those with lower modified adjusted gross incomes. In 2026, these are $110,000 for single filers and $220,000 for married couples (unchanged from 2025).

Unlike 529s, Coverdell contributions cannot exceed $2,000 per beneficiary per year, according to the IRS. While two sets of grandparents — or anyone — might open separate accounts for the same child under age 18, the total annual contribution is still capped at $2,000. Also, when the grandchild turns 18, the account and distributions are theirs.

Coverdell accounts can be combined with other education savings accounts, or can be rolled over into a 529 plan without tax implications if it’s for the same beneficiary.

7. Irrevocable education trust fund

Generally used as part of a larger estate plan, it gives grandparents far more flexibility than 529s or Coverdells, and one trust can be created for a number of grandchildren.

The funds are legal arrangements that can generate income that can be taxed, including capital gains that must be addressed by the trustee and later by the beneficiary after the trust is handed over. They’re not as tax-efficient as a 529 or Coverdell, but they can help reduce grandma’s taxable estate by excluding the assets from her estate.

Typically, there are no investment restrictions unless they’re spelled out in the trust. They fall under federal gift tax laws, whether it’s an annual exemption or the lifetime exclusion. That’s why it’s important to have a trustee that you, well, trust.

These aren’t cheap, requiring trustees, lawyers and paperwork, not to mention ongoing maintenance. But the assets are protected in trusts and the flexibility they offer can be compelling.

8. Pay off the student loan

Now there’s a surprise. The grandchild takes out loans to pay for school, and her grandparents take over the payments (no tax deduction) when she graduates.

9. Re-evaluate your plans

In a perfect world, everything you plan in 2026 will play out for the next 20 or 30 years. But, alas, we don't live in a perfect world. That’s why it’s important to update your plans on a consistent basis, double-checking that you’re still on track to meet all your financial and lifestyle goals. Maybe changes will be positive.

10. Just do it

There are many hoops you can jump through to gain tax deferrals and savings, but grandparents can also do it. That’s not to suggest skirting tax laws, but giving your grandchild money here and there over the years, earmarked for college, works, too. It opens the door to dollars getting spent on other things, but at least you tried.

Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.

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Rate cuts might be on the horizon, presenting an excellent opportunity for savers to capitalize on higher rates now before they disappear.

I've been a big fan of high-yield savings accounts. They're easy to set up, offer returns well above 4%, and I don't have to worry about being nickel-and-dimed by my bank.

However, if rate cuts happen, it will impact these accounts. Therefore, like you, I'm looking at changing where to place my emergency fund before the fall.

How CDs shield your money when rates fall

Your emergency fund should cover from three to six months of expenses. However, it doesn't hurt to save even more, as layoffs continue to impact many sectors of the economy. Sometimes, it can take from six months to a year to find a new job.

According to the U.S. Bureau of Labor Statistics (BLS), the median duration of unemployment in July was 23.6 weeks — just under five months. Keep in mind that this figure includes everyone who is unemployed, even those only passively looking for work.

For many professionals, the job hunt can stretch much longer.

With this in mind, if you feel comfortable you have enough saved, you can take a portion of your savings and invest it in a certificate of deposit. CDs come with fixed interest rates, meaning if the Fed cuts interest rates, it won't impact you.

Explore some of today's best CD rates and terms here:

Key factors to weigh before choosing a CD

There are a few things you'll want to consider before locking one in. First, make sure you don't need that money for the duration of the CD's term, or you'll incur a penalty if you need to withdraw it before maturity, negating a substantial part of the interest you earned.

Two, keep an eye on inflation, which sits at 2.7%. However, the Bureau of Labor Statistics notes inflation has increased 22.7% since January 2021, while wages only rose 21.5% during this same time, creating a gap that's making it tougher for people to keep up. One way to correct this is by investing in a savings option that far outpaces inflation.

If you want to lock in rates before they drop with quick access to your cash, my suggestion is to do a short-term CD, such as a year or less, or a no-penalty CD. I'm doing a no-penalty CD because it allows me to lock in a rate well above 4%.

Many banks allow you to withdraw your money when you need to, although you usually must keep the initial deposit in the account for the first seven to 30 days, depending on the bank.

If you're seeking other options, here's a breakdown of risk strategy based on different savings vehicles and goals for each one:

The only reason I wouldn't consider a CD is if you're in the process of building your emergency savings. In this case, I would still recommend a high-yield savings account because, unlike CDs, you can make continuous deposits.

Here's a great option to consider:

When a money market account makes sense

Money market accounts are also wise options to consider. They work like a hybrid savings/checking account in that you can earn a high rate of return and have quick access to your cash through debit card and check writing capabilities.

However, some money market accounts require a higher deposit, usually around $1,000. If you're new to building your emergency savings, I would consider them once you're more established, given that many require minimum balances.

Protect your savings from rate cuts with flexibility

Ultimately, rate cuts might be coming this year. It's the best time for savers to consider Fed-resistant options like CDs.

If you're worried about having access to your cash, consider a no-penalty CD. You'll get the cushion of shielding your money from rate cuts, with the ability to access it if you need to.

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The economy is changing, and it will likely impact savers. The July jobs report was not stellar, with only 73,000 jobs added. Moreover, the revisions to the May and June jobs reports resulted in a reduction of 258,000 jobs, showing a cooling job market. When this happens, one way the Federal Reserve can stimulate the economy and job growth is by lowering rates.

CME FedWatch projects a 92% chance of a quarter-point rate cut when the Fed meets in September. If this happens as projected, it will impact savings rates. When the Fed cuts rates, it also drops rates on all savings vehicles, from CDs to high-yield savings accounts.

With this in mind, if you're a saver who hates surprises, I have a tip for you. Doing this helps you earn guaranteed returns and lock in a high rate now before the Fed makes its next move.

Lock in a high rate before rate cuts hit

CDs don't offer the ease of accessing your cash, like money market accounts or high-yield savings accounts. However, they do come with a feature that proves handy in situations like this: A fixed APY.

With a fixed APY, you won't have to worry about what the Fed does. Once you lock in your rate, it's the return you'll earn even if rate cuts happen.

Now is an excellent time to sign up for one, with rates above 4% for many accounts. Using this tool from Bankrate, you can shop and compare options fast:

Which CD term works best for me?

Your choice comes down to your savings goals and risk tolerance. If you have cash on hand and want to earn a high rate for years, our best 5-year CD rates are a wise option to consider.

For example, if you deposit $50,000 into a 5-year CD from Lafayette Federal Credit Union at 4.28%, you'll earn $11,655.97 in interest risk-free over the term.

If you’d rather see how inflation plays out before committing long-term, you might be more inclined to a short-term CD. These are beneficial if you want to see how prices play out for the next year, as you can move your money if inflation increases to the point where 4%+ returns are not netting you enough of a return.

This is where our best one-year CD rates come into play. Locking one in now ensures you receive a high rate that won't change if the Fed cuts rates.

Using the same deposit above of $50,000, if you sign up for a one-year CD with Colorado Federal Savings Bank at 4.30%, you'll earn $2,150 in interest that first year.

And, you have the option in a year to pivot to other investments that earn you more, especially if prices keep rising.

Things to keep in mind with this CD approach

CDs are a lock your money away and forget about it type of savings vehicle. If you need to access money before your term expires, you pay an early termination fee. Banks charge penalties based on your CD maturity. If you have a one-year CD, penalties range from three to six months of interest.

Meanwhile, for five-year CDs, penalties can creep as high as one year of interest earned. Therefore, make sure you can live without this money comfortably before you sign up.

Also, some banks will renew your CD once it reaches its maturity. Set a reminder on your phone a week before its maturity date, as it gives you more time to shop around to see where rates are and whether you want to try another savings vehicle.

Ultimately, CDs are a smart savings option if you want to lock in a high rate now and not worry about upcoming rate cuts. Not only will you receive a guaranteed return, but you will have peace of mind knowing your CD is outpacing inflation.

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The Federal Reserve hasn't cut interest rates this year, giving savers ample time to capitalize on higher rates of return. However, this will soon change.

The Fed meets next week, with CME FedWatch projecting a 95% probability the Fed will cut rates by 25 basis points. Why? They're concerned that the lack of job growth outweighs the rising costs from inflation.

With this in mind, you'll want to devise a plan now, with the expectation that there will be at least one, potentially two cuts happening this year. Thankfully, high-yield options still hold the promise of higher returns, even with a slight dip from rate cuts. Here are your best options to consider.

CDs: A Fed-resistant way to save

CDs won't earn you the highest rates of return, but they come with a protection other savings options don't have: A fixed APY. That means if you lock in a longer-term CD now, the rate you lock in will be the same rate you carry throughout the term.

So, even when the Fed cuts rates, as our team projects, you'll stay ahead of the curve, with many CDs earning over 4%. Short-term CDs, such as a six-month option from ableBank, earn you a 4.50% return on your deposit.

Using this Bankrate tool can help you compare and find the best CD rates for you:

A few things to consider with a CD:

• You can't add to your initial deposit
• Early termination penalties are steep if you need access to your cash
• Some banks renew your CD automatically, so set a reminder before it matures

Who they work best for: Risk-averse savers or those nearing retirement who want a guaranteed rate of return that won't change with Fed policy.

Keep things fluid with a high-yield savings account

High-yield savings accounts (HYSA) offer more fluidity. You can access your money whenever you need to, unlike CDs, which keep your money tied up until maturity.

Right now, you can earn well above 4% for most accounts. Our top pick, Newtek Bank, offers you returns of 4.35%

A few things to remember about HYSAs:

• They feature variable interest rates, so if the Fed cuts rates, your returns will be lower
• Some banks have minimum balance requirements or you'll have a monthly fee
• Most of the best rates come from internet banks, so it's wise to switch all your accounts to them for easier cash access

Who they worked best for: Savers wanting quick access to their cash for unexpected expenses or to quickly pivot to other strategies.

Reach retirement benchmarks with investments

Historically, a diversified portfolio of stocks, mutual funds and bonds earns you a higher return than CDs or HYSAs.

You can also tailor your investment strategy based on your risk tolerance and retirement goals. Many brokerages have advisory services that can help you reach your goals and suggest options if performance isn't optimal.

Shop for adviser options with this Bankrate tool:

Things to keep in mind with investments:

• Returns are not guaranteed
• Harder to access your cash if you need it, with substantial tax consequences
• Fee-based advisers can eat into returns

Who they work best for: Savers who already have an emergency fund of six months of expenses, who are also looking to reach retirement goals and keep their money ahead of inflation.

Ultimately, now is a great time to review your savings and retirement goals. Rates remain high, at least until the Fed starts cutting rates next week. Being proactive will help you maximize savings opportunities while keeping ahead of rising costs.

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The Federal Reserve meets next week, and it might be good news for savers. After cutting rates three times last year, the Fed didn't cut rates at its January meeting and is unlikely to when it meets next week.

As such, it gives savers some breathing room to make smart moves while rates remain high. Even with the dips in APYs thanks to the rate cuts, you can still earn a healthy rate that outpaces inflation.

With this in mind, here are smart savings moves to consider, amid lower APYs and higher inflation.

Inflation projections for 2026

February's inflation held at 2.4%. However, the Iran conflict is already raising gas prices by 20% nationally, and this will likely extend to other goods.

David Payne of the Kiplinger Letter noted it is the calm before the storm. He's projecting inflation creeping up to 3% by the end of the year due to tariff effects and rising health care costs.

With that in mind, savers need to find a solution that earns them a rate that outpaces inflation. I'll outline a few strategies to adopt.

Savings strategies to keep ahead of inflation

There are several ways to maximize your savings with rising inflation. The first is to lock in a long-term CD. CDs are market-resistant as they offer fixed interest rates.

It means if you choose a five-year CD and the Fed cuts interest rates in the future, the rate you have won't change until after your CD matures.

And some five-year CD rates are around 4%. Use the Bankrate tool below to find and compare CD options fast:

There's another benefit to a long-term CD. Mark Hamrick, a senior economic analyst with Bankrate, notes, "If opting for a multi-year rate is a sound option for you, one can avoid the situation where maturing short-term assets will need to be reinvested, possibly at lower rates down the road."

And he's right. A five-year CD allows you to earn a guaranteed rate of return with no work on your part. Moreover, if the Fed cuts rates again this year, as many economists project, now's the time to get one while rates are outpacing inflation.

The one thing to note about long-term CDs is that you can't touch that money. If you withdraw it before the maturity date, you're likely paying at least a year of earned interest, lowering your returns.

Short-term alternatives that offer flexibility

Long-term CDs should keep you ahead of the game, at least for the rest of 2026. However, they're also best for conservative savers or those nearing retirement, who want a risk-free way to grow their money without access to it.

That said, what if inflation exceeds expectations and you want the flexibility to pivot to more traditional investment strategies, such as mutual funds or a diversified stock portfolio, which offer higher returns and risk?

If this applies to you, then consider a no-penalty CD. No-penalty CD rates average around 4% and have a shorter maturity window, between six and 14 months.

The benefit of these is that you can still lock in a rate while they're higher, but you also have the flexibility to pivot to other investments quickly. That way, if the Fed cuts rates and prices continue to rise, you can find different solutions that maximize returns since this scenario will squeeze savers anyway.

The main consideration with no-penalty CDs is that once you fund them, you cannot access the money for at least a week, although some banks extend that to the first 30 days. Some also restrict withdrawals to once per month, while other banks allow you to take it all after the initial holding period.

However, if you're looking for a quick way to pivot, this could be a smart option as you won't feel the immediate impact of rate cuts. Regardless of which strategy you use, CDs can shelter your money from the rising costs of everyday items.

And with the Fed holding rates steady, now is the best time to take advantage of the higher rates while they're here.

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If you've ever looked at your savings account and thought, I should be further along by now, you're in good company. Whether it’s the rising cost of living, unexpected family expenses or just the accumulation of life’s curveballs, many families are feeling the weight of financial fatigue.

In fact, you might already be participating in one of the newest personal finance trends: revenge saving. Revenge saving is exactly what it sounds like. It’s a form of bouncing back financially.

After months (or even years) of overspending, emotional shopping or living in financial survival mode, people are fighting back by saving fast and furiously. It’s a trend that’s gaining momentum and for good reason. Let’s explore why revenge saving is resonating with so many Americans right now.

What is revenge saving and why is it trending now?

Revenge saving is the financial equivalent of a wake-up call. After a season of overindulgence, distractions or unexpected expenses, people are motivated to aggressively rein in spending and boost their savings.

Think of it as the answer to lifestyle inflation or simply realizing your current savings trajectory won't support the kind of retirement or peace of mind you're aiming for.

So what's driving the shift?

Spending fatigue

After years of raising kids, investing in homes and navigating career ups and downs, many people are tired of always "managing." Between vacations, home upgrades, gifts and helping adult children, it's easy to slip into financial autopilot until something reminds you to hit the brakes.

Economic uncertainty that isn't going away

Even if your income is solid, prices keep climbing. Groceries, insurance premiums, utilities and more all add up. Add in volatile markets at times and questions about the future of Social Security. You'll see it's no wonder people are looking to take more control.

According to a recent retirement study, 64% of Americans say they worry more about running out of money than death, and 62% feel they aren't saving as much for retirement as they'd like.

A new desire for simplicity and security

Revenge saving isn't just about stockpiling cash. It's about reclaiming clarity and calm. For many, it's a path to feeling more prepared and less stressed, especially heading into retirement years or major purchases like downsizing to a new home or finally taking that dream trip.

How to use revenge saving to reach your money goals

You don't have to go on a spending fast or cancel every streaming subscription to see real results. Here's how to embrace revenge saving in a sustainable, realistic way.

1. Identify your financial goals to stay focused

Do you want to retire earlier? Rebuild an emergency fund after a few rough years? Save for a wedding, home remodel or grandkids' education? Write it down. Your "why" should be more than a number. It’s a vision of the lifestyle you want to protect or create.

2. Watch for hidden spending habits that add up

You've worked hard, so it makes sense to enjoy life. But over time, expenses quietly pile up. Subscription services, dining out more frequently and tech upgrades are all habits that often go unnoticed.

Trimming back even a few of them can free up hundreds a month without sacrificing comfort.

3. Jumpstart your savings with a focused 30-day goal

Try a 30-day low-spend challenge where you focus on saving in one area like skipping restaurants or delaying non-essential purchases. The goal is to reset habits, not eliminate all enjoyment.

4. Automate your savings to stay consistent and on track

Consider setting up separate savings accounts for different goals such as vacations, home maintenance, medical expenses, etc. Then, automate your savings with small weekly or bi-weekly transfers. It's easier to stay motivated when you see those buckets grow.

Data from Vanguard’s How America Saves report shows that 45% of retirement-plan participants increased their contribution rates last year.

Nearly half of Americans rely on employer-sponsored plans and personal savings for their retirement income. Make sure your automated system includes sending a portion of each paycheck directly into your 401(k), IRA or Roth IRA.

How to stay the course without feeling deprived

Let's face it, strict budgets don’t stick unless they feel doable. If revenge saving starts to feel like a punishment, chances are you won’t stick with it for long. That's why it's important to strike a balance between discipline and enjoyment.

One effective strategy is to build in smart rewards. When you reach a savings milestone, whether that's padding your emergency fund, contributing to your IRA, or paying off a credit card, give yourself permission to celebrate in a meaningful but budget-friendly way. Maybe that's treating yourself to a nice dinner, planning a day trip or setting aside a small amount of "fun money" each month that you can spend freely and without guilt. These positive reinforcements can help make saving feel empowering rather than restrictive.

Tracking your progress can also keep motivation high. Whether you use a budgeting app, a spreadsheet or a visual tracker on your refrigerator, seeing your savings grow can give you a tangible sense of accomplishment. It reinforces that your efforts are paying off, even if the changes feel small at first.

It also helps to bring your household into the conversation. If you’re sharing finances with a spouse or supporting adult children or aging parents, discussing your goals together can help prevent miscommunication and create shared accountability. When everyone is on the same page, it's easier to stay focused and avoid the temptation to stray from your plan.

Revenge saving is about control, not sacrifice

Remember that revenge saving isn't about depriving yourself, but about becoming more intentional. That means prioritizing quality over quantity and spending money on things that truly matter to you.

When you're clear on what adds value to your life, it becomes easier to cut out the noise and focus your resources where they count most.

Where do you think you land when it comes to spending and saving? See how your mindset compares to other readers and take the quick poll below.

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Recently, President Donald Trump signed a key piece of legislation. The “Trump megabill,” also known as the “One Big Beautiful Bill” (OBBB), is expected to impact millions of taxpayers, like you, across the country.

Among the new law’s many provisions are benefits for parents, like a boosted federal child tax credit and an enhanced adoption tax credit. But what provisions specifically address your child’s finances?

Some may help your child better afford education, including tuition expenses or school choice. Still others introduce a new type of “kid savings account.”

Here are three ways the Trump megabill will impact your child’s finances.

Related: 10 Tax Breaks for Middle-Class Families Claiming the Standard Deduction

1. Trump accounts for children

Perhaps you’ve heard about the new type of savings accounts introduced in the OBBB: “Trump Accounts.” Supporters say these are designed to help save annually for a child’s future homeownership, educational, and even entrepreneurial needs.

According to the OBBB, Trump Accounts will:

• Allow parents, relatives, and others to contribute after-tax dollars (up to $5,000 per year) in a child’s name.
• Permit savings to grow tax-deferred until the child reaches 18.
• Give children born in the United States between 2025 and 2028 seed money from the federal government in the amount of $1,000 in their accounts.

Supporters of Trump Accounts say eligible children can have one opened for them as early as July 2026.

As Kiplinger reported, multiple companies may already be on board in terms of voicing support for Trump Accounts. CNBC reported that executives from Dell, Uber, and Goldman Sachs, to name a few, attended the Trump administration's "Invest America Roundtable” held at the White House last month.

While several companies reportedly expressed support for the newborn investment program, Dell reportedly pledged a $1,000 match for its employees' children into Trump Accounts under the new tax provision.

For more information, check out Kiplinger’s article, The GOP Wants to Auto-Enroll Your Child in a 'Trump Account' for Savings.

2. 529 education plan for school students

The OBBB also changed the rules around 529 plans for kids. Here’s a quick overview of some of those changes:

• Currently, parents can withdraw up to $10,000 annually, tax-free, for K-12 tuition expenses. Starting tax year 2026, under the OBBB, individuals will be able to withdraw up to $20,000 annually.
• Parents can also deduct more types of K-12 expenses. For instance, books and standardized test fees (like the SAT or ACT) are “qualified expenses” under the new law for 529 plans, as are online learning materials, certain tutoring fees, and dual enrollment fees for college courses taken in high school.
• More post-secondary expenses are included as qualified expenses under the new law. For example, the OBBB allows withdrawals for workforce credentials programs and continuing education courses.

The last point may be particularly advantageous if your child decides to change careers post-college or needs a certificate to enter the workforce.

But when it comes to education savings accounts, there’s more than just 529 plans or even Trump accounts. Coverdells may be used if you meet certain income limits. These special savings accounts allow you more control over your investment options compared to 529s.

Check out Kiplinger’s report for more details: Coverdell ESAs vs. 529 Plans: Which Should You Choose?

3. K12 expenes: Private school vouchers

Another change in the OBBB involving children is a provision dealing with private school voucher tax breaks. These voucher programs use publicly funded scholarships that allow students to attend private schools.

The OBBB provides a dollar-for-dollar tax credit for donations made to private K-12 voucher programs.

• The donation must go to a “Scholarship Granting Organization” (SGO) to count for the tax credit.
• SGOs are nonprofit organizations that distribute donations to students through scholarships, which can pay for private school tuition, books, and homeschooling costs.
• The tax credit is worth up to $1,700 of adjusted gross income.

While the new provision promotes private school choice, some states won’t get the tax credit.

According to the National Education Association, private school vouchers have appeared on state ballots 17 times and were rejected by voters. Colorado, Kentucky, and Nebraska are just a few of the recent states that did not approve.

For more information on who would qualify for the scholarships, check out Kiplinger’s report, 'Unprecedented' Private School Voucher Tax Credit in Trump's Megabill.

Read More

• Three Major 2025 Tax Changes for Parents in 'Big Beautiful Bill'
• Child Tax Credit: How Much Is It for 2025?
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You may have heard of the Trump tax bill that was recently signed. This key piece of legislation, so-called the “One, Big, Beautiful Bill” (OBBB), impacts millions of Americans through its provisions on health, border security, and taxes.

But what you may not know is how the Trump megabill is expected to affect parents. For instance, some well-known federal tax breaks, like the federal child tax credit, will be boosted. Others, including the personal and dependency exemption, are disappearing forever.

Here are three changes parents should look out for in the OBBB in 2025.

Related: 10 Tax Breaks for Middle-Class Families Claiming the Standard Deduction

1. Child tax credit in ‘Big Beautiful Bill’

Under the OBBB, the federal child tax credit (CTC) has increased. Prior law allowed a credit on taxes up to $2,000 per qualifying child under the age of 17. The new law allows up to $2,200.

However, the new child tax credit amount comes with a couple of significant caveats:

• The $200 increase only applies to the nonrefundable portion of the tax credit, meaning that your taxable income factors in. Married filing joint couples with $400,000 or more (single filers $200,000 or more) will not be able to claim the full credit.
• A Social Security Number (SSN) is required for parents or guardians claiming the tax break. Before the OBBB, eligible families with children could claim the child tax credit regardless of parents' immigration status.

Households with non-citizen parents will likely be ineligible to receive the credit. This means that the nearly 2.7 million children in the U.S. who previously qualified will no longer be eligible for the credit due to their parents’ immigration status.

But for those who do qualify, the child tax credit has also been indexed for inflation starting in 2026. That will increase the credit amount every year based on inflation-adjusted numbers.

For more information, check out Kiplinger’s report, Here's How the Child Tax Credit 2025 Amount Will Increase Under Trump.

2. Trump account for kids and newborns

Trump’s megabill also introduces a new type of savings account. The “Trump Account” is designed to save annually for a child’s future educational, homeownership, and entrepreneurial needs.

While sharing some similarities with a 401(k), there are some marked differences. Namely, a Trump account:

• Allows parents, relatives, and others to contribute after-tax dollars (up to $5,000 per year) in a child’s name.
• Permits savings to grow tax-deferred until the child reaches 18.
• Gives children born between 2025 and 2028 seed money of $1,000 in each account.
• Auto-enrolls any eligible child who does not have a Trump account.

The last bullet point may be problematic if Trump's accounts are comparable to 401(k)s. About one-quarter of 401(k) accounts are forgotten, according to USA Today, amounting to $1.65 trillion in unclaimed assets across the U.S.

Since the seed money would likely come from taxpayer dollars, the auto-enrollment feature could lead to millions in tax dollars sitting idle.

However, in a poll conducted several years ago, CNBC reported that 53% of parents don't open any type of savings accounts for their children.

Trump accounts could encourage more Americans to save for their child’s future and “help produce new capitalists,” as Sen. Ted Cruz (R-Texas), who initially proposed the measure, disclosed to Semafor earlier this year.

For more information, check out Kiplinger’s report, The GOP Wants to Auto-Enroll Your Child in a 'Trump Account' for Savings.

3. ‘Big Beautiful Bill’ changes for parents

The Trump tax bill also made permanent the employer-provided paid family and medical leave (PFML) credit. Here’s a quick overview of what that means:

• Before, businesses could only take the PFML tax credit for employees who had worked at least one year for an employer. Now, employees who have worked at least six months and for at least 20 hours a week may qualify.
• Employers can continue to calculate the credit based on wages paid or, under the new law, on PFML insurance policy premiums.
• State or locally mandated paid leave now counts towards satisfying the eligibility requirements for the credit.

While the PFML tax credit is a business tax break, it is designed to encourage employers to offer paid leave to more of their employees.

Only about 27% of private industry employees have access to paid family leave through their employer, according to a recent report by Congress.gov. The expanded PFML tax credit could help more families spend time with their children or support their household during medical leave.

Other parent tax changes under the OBBB include:

• Making the federal adoption credit partially refundable, with a $5,000 maximum amount. The credit will also become inflation-adjusted.
• Permanently removing the personal and dependent exemption, which was worth $4,150 (indexed for inflation).

Before the Tax Cuts and Jobs Act (TCJA), 292.7 million people claimed personal and dependent exemptions, per the IRS. Total taxpayer savings were in the billions, so individuals could see a reduction in savings with the termination of this key tax break.

What’s still to come?

Although the OBBB has been signed into law, talks continue on Capitol Hill regarding childcare. This may lead to future changes for parents.

For instance, Sens. Katie Britt (R-Ala.) and Tim Kaine (D-Va.) are leading a bipartisan effort titled the “Child Care Availability and Affordability Act” to address current childcare cost challenges through tax code adjustments, like increasing the size and refundability of the child and dependent care tax credit (CDCTC). Some similar changes related to childcare contained in the OBBB are expected to be implemented in 2026.

While the U.S. continues to experience a shortage of affordable, accessible, and high-quality childcare options, future legislative efforts may greatly impact how parents and guardians care for their children. Stay tuned.

Read More

• Money for Your Kids? Three Key Ways Trump's ‘Big Beautiful Bill’ Impacts Your Child's Finances
• 2025 Family Tax Credits: Four IRS Changes That Can Save You Money
• Here's How the Child Tax Credit 2025 Amount Will Increase Under Trump
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The final straw in giving up on cable and becoming a cord-cutter was when the cable box I paid $10 monthly to rent — on top of my $100 monthly bill — had fuzzy reception. To get a clear image, I had to use the cable company's app on my smart TV with an internet connection, rather than going through the cable box itself.

That made me think: Maybe I could save even more with cheaper, alternative services for cable.

After comparison shopping, I now pay $40 monthly for mostly the same channels through the Sling app, which includes digital recording, on-demand programs and a great channel guide. And it works while traveling, except for local stations. It was half the price of YouTube TV – and DirectTV was even pricier.

After shopping, I was able to get all services, including internet, streaming services and my cellphone, for $150 per month, adding up to $100 saved monthly. Plus, I can watch programming on any device without paying rental fees for cable boxes in different rooms.

My cord-cutting savings aren't uncommon. Eighty dollars is "the minimum that I've been able to save people," says Ray Gustini, a CordSlayer cord-cutting consultant. He helps people save money by planning equipment purchases, figuring out what services they watch, and when to rotate services by sports season or series start and end dates.

He recommends the following steps to save money by cord-cutting:

1. Get a digital antenna for free services

With just a digital antenna in an urban area, you may be able to get free over-the-air channels such as FOX, CBS, ABC, NBC, and dozens to over a hundred local channels, depending on where you live. "It's not like back in the day where you'd get eight channels; there are hundreds of things you can pick up locals from a big variety of places," says Gustini.

Digital antennas cost under $50 if you install it yourself or can be purchased for as little as $50 with easy installation. A digital antenna can be "screwed into the back of your TV," says Gustini.

Just don't expect them to work well if you don't live in a densely populated area. Jason Haviland, a Cottage Street Advisors senior partner and certified financial planner, lives 50 miles from Boston. He was too far away from TV towers near the city to get free channels with a digital antenna, so he spent several hundred dollars on a physical antenna installed on his house rooftop — only for new neighborhood trees to eventually block his signal, leaving many channels pixelated.

Thus, he has to use paid apps for some channels, but his strategy is still cheaper than cable TV services. He estimates he's saved up to $250 monthly by cutting the cord.

2. Explore free services on your smart TV

If you have a smart TV, it likely comes with its own set of free programming. Samsung devices and smart TVs come preprogrammed with hundreds of channels, including networks you know. Channels currently include Movie Favorites by Lifetime, PBS Kids and MSG Sports Zone.

Other TVs have their own preprogrammed free TV, including LG Channels, Vizio WatchFree+ and Google TV Live, which is available on a variety of brands.

3. Don't pay for services you don’t use

Eliminating services you never use or rotating services for sports or seasonal series can save hundreds of dollars per year. I signed up for Sling because I was used to having cable.

But I realized I only watch one TV channel beyond what I stream with Amazon Prime and Netflix. Instead of paying for Sling, I can get an app for that channel and save $25 per year – or $300 annually.

"You can toggle stuff on and off," says Gustini. "That's a big thing, not rotating your subscriptions."

Set reminders for when the show you are watching ends to cancel your subscription. Free trial end dates also need reminders.

For sports, look at what you need to purchase to watch the games you like. "You can still get a lot of those games with a digital antenna, because you'll be getting whatever's on CBS, NBC and Fox." Then, you can supplement with an ESPN standalone or a March Madness package, he says.

For services you do use, look out for regular deals and sales, like around Black Friday or Amazon Prime Day.

Let your cord-cutting savings grow

Now that you've started making choices that save your monthly spending, you should put those savings to work.

Whether you want the safety of a high-yield savings account or to invest your money in an S&P index fund, you can easily save up over $10,000 in 10 years — and potentially over $70,000 if the investments perform well.

Let's say after cord-cutting, you're saving $75 per month. That, on its own, adds up to $9,000 over 10 years.

Now, if you take your $75 monthly savings and invest it, you could attain a total of over $11,200 or even upwards of $15,000 depending on what you do with it, thanks to growth and the power of compounding. And if you invested $75 monthly for 20 years, the base $18,000 could grow to $28,000 or even up to about $75,000, depending how you invest it and other factors.

The wide earnings difference depends on whether you invest your money in a savings account with a high interest rate (high-yield savings account) or an S&P 500 indexed fund (an investment containing stocks in the largest 500 publicly traded companies).

High-yield savings accounts have variable interest rates, so the actual growth of investing $75 per month over 10 years will vary, but you can currently find accounts with rates over 4%. They differ from, say, a certificate of deposit (CD), which might have a higher interest rate but doesn't allow for adding new investments on a monthly basis like a savings account does.

The S&P 500, meanwhile, may sound like a "boring" way to invest in the stock market, but it’s also one of the more lucrative options. Historically, the S&P 500 has returned about 10% per year, or around 6-8% after inflation.

Haviland, the Boston-area financial planner, also suggests you could invest the extra savings in Treasury bills, an investment by the U.S. government that often has higher returns than the average high-yield savings account. Like a CD, though, those have set schedules of how you can invest.

This is a good reminder of a few important personal finance facts:

1. Recurring payments add up over time, so one of the most effective ways to adjust your budget is to try to cut recurring payments, like cable bills, down.
2. On the flip side, recurring savings add up over time, and a little goes a long way, especially over longer periods of time.

Seemingly "small" decisions have major impacts on your financial life — and these savings might make you smile a little extra the next time you sit down to watch your favorite show.

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One of the goals of saving money is to find solutions that help you earn more quicker. And an overlooked savings option that can help you achieve this is a jumbo CD.

Jumbo CD rates offer some of the highest returns I've found among savings accounts. They're easy to set up, and, most importantly, they don't take years to mature, with the best option giving you money back with a significant return in one year.

So, what's the catch? Unlike regular CDs, which have lower deposit minimums, jumbo CDs require you to devote a large portion of savings to them. While some banks offer them with minimum deposits of $10,000, the norm tends to be closer to $50,000 to $100,000.

And that can be difficult to know you'll be without access to that significant chunk of money for a time. However, if you're patient, you can earn more than $4,000 in one year. I'll show you how.

This one jumbo CD earns you an excellent savings rate

If you're shopping for a risk-free savings vehicle that helps you maximize your savings quickly, you can't beat this one-year jumbo CD from Finworth, an online bank:

The minimum deposit for this account is $50,000. On its own, this could earn you $2,230 in one year. That's a fantastic return.

However, doubling your deposit to $100,000 is where you see a significant increase in your return. Doing this yields you $4,460 in total interest earned.

Sure, you'll need to tie up your money for a year. But a jumbo CD is a risk-free investment with a fixed interest rate. That means if the Federal Reserve decides to cut rates in the future, it won't impact you since your rate is locked in.

Therefore, you gain peace of mind that you'll earn a guaranteed return with no risk on your end.

How to open a jumbo CD

Jumbo CDs are easy to open. If you choose the option from Finworth, you can visit their website, sign up for an account, provide personal details and fund it through an ACH transfer.

Alternatively, you can use our Bankrate tool to shop for other options as well, if you want something with a short window of maturity:

There are a few things to consider before opening a jumbo CD. The first is that you can't access the funds until the maturity date.

You can do an early withdrawal if you need the cash, but the penalty banks impose will negate some of the earnings you receive. So make sure you're comfortable tucking it away for a bit.

On the other side, set a reminder about a week from your maturity date to determine if you want to continue on to another term, as some banks autorenew CDs.

If you choose the one-year jumbo CD from Finworth and it renews, you'll have 10 days from its maturity date to cancel the renewal.

Is now a good time for a jumbo CD?

It's a great time for you to consider it. And you might want to act soon as the winds of change could be coming.

The Fed hasn't cut rates this year. However, it's becoming clear this might not carry through the fall. While Fed Chair Jerome Powell adopts a wait-and-see approach to how tariffs impact inflation, the "dot plot" indicates the cental bank will do two quarter-point percentage cuts this year.

If the Fed does cut rates, it would lower savings rates. Thus, reducing your earning potential. That's why, as uncertainty continues to exist and rates remain high, I recommend striking while the iron is hot and you can earn more money.

The bottom line on jumbo CDs

Jumbo CDs like Finworth's can help you earn a lot of money quickly, without any risk. While they require more of an investment, the maturity dates are much quicker than some other CD options, giving you a tight window to make more money.

Moreover, given we're still unsure of how the Federal Reserve will handle rate cuts in the future, it means now is the perfect time to lock in a higher rate, while they're still here.

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