Where to Store Your Cash in 2026
Protect your cash, and position yourself for stronger returns for the rest of the year.
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.
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.
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
