Savers face an uncertain future. The Federal Reserve has already cut rates twice, which has lowered the yields on many savings accounts and CDs.
Furthermore, President Donald Trump is expected to appoint a new head of the Federal Reserve by the end of the year. Trump wants more aggressive rate cuts to pay down debt and save money; whoever takes the helm will likely advocate for further cuts in 2026 if they can persuade other voting members.
As a result, the unclear situation calls for clarity for savers. Here are three smart money moves to consider now to help you reach your goals in 2026 and beyond.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Ensure you're on the road to your retirement goals
Setting up a retirement plan is only half the game. You'll also want to check in periodically to see if it's continuing to help you reach your goals.
If you're working and have a 401(k) from your employer, review it annually. Ensure you have the maximum contribution you feel comfortable with, and the performance aligns with your goals and risk profile. If they don't, you can adjust contribution levels or reallocate your investments.
For investors without a 401(k), you'll want to explore long-term investing options that offer healthy returns at an acceptable risk. If you have several years before your expected retirement, you're more likely to get better returns through the stock market than traditional savings accounts. (Keep tax implications in mind, as your own investments are treated differently from 401(k) plans.)
This is where a target-date fund comes in. These funds are built for saving for retirement, and they do the work for you to target the growth you want.
Read more: Best Online Brokers and Trading Platforms for 2025
Finally, if you're saving for retirement, keep up with your IRA. For 2026, you can contribute up to $7,500, which helps you reach your retirement goals and is a tax-smart planning strategy. It can help to plan ahead to make that contribution, whether that means setting aside a certain amount each month or planning to use a year-end bonus for your contribution.
Build, maintain and protect your emergency savings
Building an emergency fund ensures you're prepared for surprise expenses or can weather a job loss. The best option for achieving this is with a high-yield savings account (HYSA).
If you're working, you can set up automatic transfers from your checking account to your high-yield savings account on payday, or set your paycheck to direct deposit a certain amount each round into a high-yield savings account.
I recommend setting aside at least 10% each check, but aim to do more if possible until you have an emergency fund that covers about six months of expenses.
Meanwhile, if you already have an emergency fund at a comfortable balance, it's a good idea to review your account. Ensure the amount you've accrued still meets your needs, and you're earning a healthy rate of return.
If not, it doesn't hurt to shop around, as many online banks can help you maximize your earnings.
Read more: Best High-Yield Savings Accounts
There are several things to consider with HYSAs. Chief among them is that these accounts have variable interest rates. If the Fed cuts rates again in the future, it could impact your earnings through lower APYs. But generally speaking, even with the cuts, HYSAs still provide returns higher than inflation.
Additionally, any income earned from a HYSA is taxable as ordinary income and based on your federal tax income bracket. At the end of the year, your bank sends you Form 1099-INT, which you can file with your tax return. Don't let the tax implications deter you, though, as you're only paying taxes on the interest gained.
Shield your savings for a specific goal
If you're saving for a large expense coming at an expected time — like a scheduled vacation or the birth of a child — set funds aside and find a savings vehicle that grows. In these cases, I recommend CDs, as you can find a term that matches your plans.
Say you're saving to help pay for your child's wedding in 2027. You can open a one-year CD now to earmark money for it. Make sure to set a reminder as the maturity date nears, as many banks auto-renew CDs.
CDs are also beneficial in that once you open one, the rate remains fixed. If the Fed cuts rates again, it won't impact your earnings. You can find the best CD rates that fit your savings goal with this Bankrate tool:
If you're concerned about tying up your money but like the fixed rates CDs offer, another approach could be to use a no-penalty CD. No-penalty CDs give you the best of both worlds in that you lock in your rate as you would with a regular CD, but you have access to your cash when you need it.
This option works best if you have short-term goals, such as saving for a vacation next summer, and require quicker access to your money.
Charting a course for a successful 2026
The best time to plan for next year is now. Doing so helps you set any financial priorities and goals you want to achieve. From here, you can use these strategies to help you reach your goals, even with the uncertainty 2026 might bring to savers and investors.
Related content
-
Could Your ZIP Code Cut Your Federal Taxes? New Bill Explains HowIncome Taxes The location-based tax cut would expand federal brackets for high-cost areas in New York, California, Florida, and more. Here's who would qualify.
-
Shopping for Long-Term Care Insurance at Age 50, 55, 60 and 65Long-term care insurance can help offset one of the biggest financial blind spots in retirement. But timing and strategy are everything.
-
5 Tax-Saving Strategies That Can Lead to a Better RetirementAmericans are working for more companies across their lifetime — and for far longer. That can lead to greater tax liabilities you'll need to plan for.
-
Why I Believe John Oliver Was Actually Too Kind to 'Cash Now' PredatorsCurrent laws are largely ineffective at protecting accident victims from "fast cash" companies that buy structured settlements. Here's how to protect yourself.
-
5 Investing Lessons from the Knicks' Championship WinAs the Knicks prepare to celebrate with a ticker-tape parade, we take their hard-fought lessons to the trading floor.
-
Thinking About Leaving Verizon or AT&T? T-Mobile Is Offering Up to $800 to SwitchYou don't always need a new phone to save money. Switching carriers could lower your monthly wireless costs while letting you keep the device you already have.
-
6 Ways to Make Economy Feel Like Business ClassYou don't need a premium ticket to enjoy a better flight. These simple upgrades can add comfort and convenience to your next trip.
-
What You Need to Know About Money Market AccountsThe term "money market" has become a catch-all description for a variety of interest-bearing products that follow different rules.
-
Whole Life Insurance: Stealth Retirement Savings Tool or Waste of Money?It may seem like everyone wants to sell you a whole life insurance policy. Is it worth it as a retirement savings hack?
-
How to Learn to Stop Worrying About the Gift Tax and Give Your Kids Money AlreadyYou have to let the IRS know about large gifts, but tax consequences aren't a concern for most families.
-
'Streamflation' is Costing You. Here's How to Save Without Missing Your Favorite ShowsSubscribing to Netflix, Hulu and other popular services keeps getting more costly. Use our guide to watch the shows and movies you love at the right price.
