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

Whether you are a recent investor in I bonds, have owned them for many years, or are pondering adding them to your investment portfolio, you should be aware of the federal income tax rules.

I bonds have important tax advantages for owners. Interest earned on I bonds is exempt from state and local taxation. Also, owners can defer federal income tax on the accrued interest for up to 30 years.

These rules might seem simple at first. But they're not as straightforward as you think, and they can get complicated pretty quickly.

For example, the tax treatment of I bonds varies depending on who owns the bonds, whether you gift the bonds to someone else, and, in some cases, how the bonds are used. Following are descriptions of how and when I bond interest is taxed under federal law in eight common situations.

Note: For people who own EE bonds, the federal income tax consequences are identical to those of I bonds. So this story is also applicable to you.

1. Taxes when you are the bond owner

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

However, deferring tax on the full amount of accrued interest for up to 30 years may sound like a great idea until you get the tax bill for three decades' worth of interest.

Also, taking the tax hit all at once can push you into a higher federal income tax bracket, making the tax bill even more expensive than it needed to be.

2. How to report and pay taxes when you cash in I Bonds or they mature

If you cashed in I bonds this year, you must report the interest on line 2b of your 2025 Form 1040 and pay tax to the extent you didn't otherwise include the interest income in a prior year. If you received $1,500 or more in interest during the year, you would also have to fill out Schedule B and attach it to your tax return.

If you keep the I bonds through the date they mature, generally 30 years, and you didn’t otherwise include the interest income in a prior year, you will be taxed on all the accrued but previously untaxed interest in the year of maturity, whether or not you cash them in. You would report interest income on your Form 1040 in the same manner as if you cashed in the I bonds.

If you are using the bond proceeds to pay for higher education, some of the interest may be exempt (see "Using I Bonds for Education" below).

3. Tax implications of co-owned I Bonds

For I bonds issued in the name of co-owners, such as a parent and child or grandparent and grandchild, the interest is generally taxable to the co-owner whose funds were used to buy the bonds.

However, that co-owner can choose to defer paying tax on the interest or report it annually. This is true even if the other co-owner redeems the bonds and keeps all the proceeds.

4. Gifting I Bonds: Tax rules when buying bonds for others

Savings bonds make great gifts. But if you buy I bonds for someone else, such as your children, grandchildren or any other person, the interest is reportable by that person, provided the bonds are titled in his or her name. Just like any other holder of I bonds, the recipient can choose to defer paying tax on the interest until the earlier of the year the bonds mature or are cashed in, or he or she can report the interest annually.

5. Gifting I Bonds you own

Gifting an I bond before maturity will accelerate taxation of the interest income. Giving away bonds you already own to someone else doesn't get you off the hook with the federal government for owing money on previously untaxed interest. If the bonds are reissued in the gift recipient's name, you're still taxed on all that interest in the year of the gift.

6. Donating I Bonds to charity

Donating an I bond before it matures to charity while you're alive will also accelerate taxation of the interest income. As with gifts to other people, giving away bonds you already own to your alma mater, favorite museum or other charitable organization doesn't let you avoid the tax on previously untaxed interest. You're still taxed on all that interest in the year the donation is made.

7. Inheriting I Bonds

If you inherit I bonds that haven't yet matured, who is taxed on the accrued interest that went untaxed because the original owner deferred the interest? It depends. The executor of the decedent's estate can choose to include all pre-death interest earned on the bonds on the decedent's final income tax return. If this is done, the beneficiary reports only post-death interest on Form 1040 for the year the bonds mature or are redeemed, whichever comes first.

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

8. Using I Bonds for education

One way to avoid paying federal income tax on accrued I bond interest is to cash in the bonds before or on the maturity date and use the proceeds to help pay for college or other higher education expenses for you, your spouse or your dependent. But there are lots of rules and hurdles to jump over to be able to take advantage of this tax perk. For instance:

• You must have purchased the bonds after 1989 when you were at least 24 years old.
• The bonds must be in your name only.
• The bonds must be redeemed to pay for undergraduate, graduate or vocational school tuition and fees for you, your spouse, or your dependent. (Grandparents can't use this tax break to help pay for their grandchild's college tuition unless the grandparent can, on their 1040, claim the grandkid as a dependent.)
• Room and board costs aren't eligible for the exclusion.
• The exclusion is subject to strict income limits. For 2025, it begins to phase out at modified adjusted gross income (modified AGI) of more than $149,250 for joint filers and $99,500 for other filers, and is fully phased out at modified AGI of $179,250 for joint filers and $114,500 for other filers. For 2026, it begins to phase out at modified AGI of more than $152,650 for joint filers and $101,800 for others and is completely phased out at modified AGI of $182,650 for joint filers and $116,800 for other filers.

If the proceeds from all savings bonds cashed in during the year exceed the qualified education expenses paid that year, the amount of interest you can exclude is reduced proportionally.

Use IRS Schedule B and Form 8815 to report and calculate any excluded I bond interest used for education.

Related

• Bond Basics: Investing
• How Are Inherited EE or I Savings Bonds Taxed?
• Types of Income the IRS Doesn't Tax

Whether you're pleased or disappointed about the resumption of the Federal Reserve's rate-cutting cycle may depend on whether you are primarily a borrower or a saver. Regardless of where you fall on that spectrum, if you're an investor, now is a good time to review your portfolio and make some tweaks to accommodate — and capitalize — on a lower-rate regime.

The quarter-point rate cut from the Fed in September was the first since December 2024. The central bank followed this up with another one in October, and while it's too soon to call the December meeting, more rate cuts are expected in 2026.

Traders were recently betting that by next April, the federal funds rate (the interest rate that banks charge each other for overnight loans) would sink to a target rate of 3.25% to 3.5%, according to CME Group's FedWatch tool. That's a full percentage point lower than the Fed's benchmark rate in early September — two points lower than when the current monetary easing cycle began in September 2024.

The good news for investors is that lower interest rates are largely positive for stocks — even in the second year of a rate-cutting cycle. Dating back to 1990, the S&P 500 Index has gained an average 11% in price in year two of Fed rate cuts, according to Sam Stovall, a market historian and chief investment strategist at research firm CFRA.

Zeroing in on how the market performs following a pause of several months during a rate-cutting cycle, Ryan Detrick, chief market strategist at wealth management firm Carson Group, found that since 1970, the S&P 500 has been higher nearly 91% of the time in the year following the resumption of rate cuts, returning an average 12.9%.

Of course, a lot depends on the health of the economy and whether rate cuts are occurring when a recession is imminent or underway or when the economy remains relatively healthy. Looking at the 45 rate-cutting campaigns going back to 1954, market strategists at Glenmede, another wealth management firm, found that the average S&P 500 gain over the course of the cycle was 13%; with no recession the average gain was 24.2%, and with a recession it was just 6.6%.

"We look at the economy as still on fairly firm footing," says Detrick. Although there are signs of labor-market slowing, there is also evidence of stronger-than-expected retail sales, he notes. "We have an okay economy being led by very strong corporate earnings growth. A Fed rate cut is the cherry on top, and they are likely to cut well into 2026. That's bullish for equities," he says.

Strong stock sectors for Fed rate cuts

Historically, the sectors that have performed best in the second year of rate cuts include real estate, financials, tech, health care and consumer staples, according to CFRA. That might not be the case this time around: Although Stovall currently recommends investors overweight stocks in the financial and tech sectors (as well as communications services), he has an Underweight rating on health care stocks, and he sees real estate and staples shares merely keeping pace with the market.

It's simply too early to shift into sectors traditionally considered more defensive, says Detrick. He still likes large-cap stocks in the financial, tech and industrial sectors, which have been leaders in the current bull market. "We're sticking with the ones who brought us to the dance," he says.

Nonetheless, it's a good time now, especially if you're nervous about the market's highfliers, to make sure you have some exposure to midsize- and small-company stocks, he adds, as well as international fare.

Lower rates may be the catalyst long-suffering small-cap stocks have needed. Indeed, on the heels of the September rate cut, the Russell 2000 Index, a popular small-cap benchmark, hit its first new high since November 2021 — an interval when the S&P 500 set 89 new highs, according to Stovall.

As interest rates drop, "small-cap companies are likely to benefit disproportionately," note the strategists from Glenmede. That's because more than half of small-cap debt is issued at floating rates. "As interest expenses fall," they say, it "should provide a meaningful tailwind to earnings."

Moreover, small firms should see a more sizable benefit from corporate tax relief, while also being less exposed to the impact of tariffs than large companies, according to Glenmede. And despite the recent rally, valuations remain compelling compared with their blue-chip cousins. "Small- and mid-cap stocks could have a very long runway — well into 2026, we think," says Detrick.

A good way to add more exposure to mid- and small-cap stocks is with the iShares Core S&P Mid-Cap ETF (IJH) and the iShares Core S&P Small-Cap ETF (IJR). Both exchange-traded funds are members of the Kiplinger ETF 20, the list of our favorite ETFs. (Prices, returns and other data are as of September 30.)

Step away from cash

You've no doubt noticed that your cash is earning less. But further deterioration in the economy — continued weakness in the job market, say — could send cash yields to the basement. "The imperative to put cash to work is increasing," say strategists in the chief investment office at UBS Financial Services.

For short-term spending needs, stick with the modest yields on certificates of deposit and money market funds, they advise. For expenses that are one to three years away, consider a bond ladder, with IOUs of staggered maturities.

Cash earmarked for needs up to five years out can be invested in intermediate-term government or investment-grade corporate bonds, according to UBS. Baird Aggregate Bond (BAGSX), a longtime member of the Kiplinger 25, the list of our favorite actively managed no-load mutual funds, yields 3.9% and has ranked in the top half of similar funds in seven of the past 10 years.

Or, recommends UBS, consider a multi-sector bond fund, whose managers can pick and choose among a wide array of fixed-income assets.

One to explore is the Pimco Multisector Bond Active ETF (PYLD). The ETF, with a yield of 5.1% and a total return of 7.0% over the past 12 months, had a hefty stake in securitized assets (think pooled mortgage loans and the like) at last report.

Finally, investors looking to replace regular income from cash, and who can tolerate the higher risk of stocks, can seek out dividend payers, such as those found in the Kiplinger Dividend 15, our favorite dividend-paying stocks.

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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Getting cash from an out-of-network ATM costs more than ever. Average total ATM fees, including both the charge from your own bank as well as from the ATM’s operator, are at a record high of $4.86, according to a recent Bankrate survey.

The average minimum balance required to avoid a monthly maintenance fee on an interest-bearing checking account has reached an all-time high, too. Customers have to keep $10,705 in their accounts to sidestep a fee of $15.65, on average.

Overdraft fees have dropped slightly from 2024, but they’re still steep, averaging $26.77.

The good news is that you can steer clear of all these fees, especially if you choose your account wisely. Use these tips to keep them at bay.

Beat ATM surcharges

Before you withdraw cash at an ATM, make sure the ATM is in your bank’s network. Some institutions are members of large networks, such as Allpoint or MoneyPass, that allow customers to withdraw money fee-free from tens of thousands of ATMs around the country.

And members of credit unions that are part of the CO-OP network can access more than 30,000 surcharge-free ATMs nationwide.

Another idea: When you use your debit card to make purchases at participating retailers, such as some grocery stores and pharmacies, you may be able to get cash back as part of the transaction (but check first whether the merchant charges a fee for this service).

Keep in mind that retailers often impose lower limits than ATMs on how much cash you can get.

Some banks reimburse customers for out-of-network ATM surcharges. Ally Bank, for example, refunds up to $10 monthly in ATM fees for those who use its checking account or money market deposit account.

Charles Schwab Bank reimburses all ATM surcharges, both in the U.S. and abroad, with its Investor Checking and Investor Savings accounts.

The Cash Management Account from Fidelity Investments includes unlimited reimbursement of ATM fees worldwide, too.

Dodge other fees

You can still find free, no-strings checking accounts. The above-mentioned accounts from Ally Bank, Charles Schwab Bank and Fidelity don’t charge a monthly fee, and other internet banks offer no-fee checking, too, including Axos Bank, Capital One 360, Discover Bank and EverBank.

Even checking accounts that charge a monthly fee usually offer at least one way to avoid it. You may be able to skip the fee if you set up direct deposit, for example.

And plenty of accounts that include a minimum-balance requirement as a qualification have a threshold of less than $10,000. TD Bank, for instance, lets you skip the $15 monthly fee on its Beyond Checking account if you meet one of three requirements, and one of them is maintaining a daily balance of $2,500 in the account.

If you’re enrolled in overdraft coverage, your bank will cover for you if you spend more money than you have in your checking account, but it’ll charge you an overdraft fee.

You can opt out of overdraft coverage; in that case, your debit card may be declined in a transaction if you have inadequate funds in your account.

Alternatively, many banks let you link your checking account to a backup source, such as a savings account, and have money automatically transferred if you overdraw your checking account.

Some institutions charge a fee for this service, but it’s typically less than what you’d pay for overdraft coverage. Other banks offer overdraft transfers at no extra charge.

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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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.

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Since the turn of the century, consumers have had plenty of reasons to be selective and critical of institutions due to cyberattacks, personal identification hacks, mismanagement of accounts and the mortgage crisis of the late 2000s.

Trust in a financial institution is built over time, yet it can be lost in an instant. When that trust is fragile, as it's been for some time, the role of a credit union becomes even clearer.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

People want to know that the organization holding their money sees a customer as more than an account number. Individuals, couples and families want a financial partner that listens, responds, and acts with their best interests at heart.

Trust is built through daily actions

For me, trust is built in those everyday moments when a member's well-being comes first. It's the time to listen to someone who's uncertain about their finances, the clarity a financial institution can provide when options feel overwhelming, and the follow-through that shows words matter.

Each action sends a signal that there's an investment in people's security and peace of mind.

That commitment is woven into how we operate at Affinity Federal Credit Union, where I am the CEO and president.

Reliability, transparency, and empathy shape every interaction. If we make a mistake, we own it. If a concern goes unresolved, we revisit it until it's right.

That consistency forms the base layer of trust because members notice not just what we do well, but how we respond when things don't go as planned.

One moment that stands out involved a member facing unexpected medical bills and struggling to keep up with loan payments.

Rather than send a form letter, our team reached out to the person directly, reviewed the situation, and adjusted the repayment schedule so it fit the member's reality.

There was nothing complex about it on our side. It was just a simple act of understanding. That approach reinforced what trust really means: being there when people need you most.

Different generations often define trust in slightly different ways:

• Younger members tend to associate it with convenience and digital reliability. They want seamless, secure access paired with responsiveness when they reach out.
• Older members often value face-to-face relationships and personal familiarity.

The common thread is dependability. Whether someone taps a mobile app or walks into a branch, they want to feel the same level of care and accountability.

Balancing technology and human connection

It's important to focus on aligning technology and the people a financial institution serves. Strong digital tools make banking easier, but they can't replace empathy or judgment.

When personal connection is supported by trustworthy systems, members feel confident that their financial partner is looking out for them.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

Trust can erode quickly in today's environment. Cyberattacks, fraud, misinformation, and confusing fees all have the potential to weaken confidence. My team at Affinity takes those risks seriously.

Our employees receive ongoing training to stay ahead of new scams, and our response teams act immediately when a threat arises. Every communication is clear, prompt, and honest.

That transparency, especially in stressful moments, strengthens trust.

Recent data reinforces that there's still work to do. A 2025 Accenture study found that while most consumers trust their main bank to keep their data secure, barely half extend that same trust to other financial providers. That gap shows why steady communication and visible action matter.

People want to see that their institution is as invested in their safety as they are in their savings.

Trust through shared ownership

What makes credit union trust distinct is that it's built on shared ownership. Members aren't customers. They're part of the cooperative itself.

Every decision these institutions make is shaped by accountability to those they serve, not to outside shareholders. That creates a deeper sense of purpose behind every interaction.

When people know an institution exists to serve rather than to sell, trust comes more naturally.

People want to feel that their financial partner is steady, transparent, and genuinely on their side. Credit unions were built to uphold that mission.

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

The larger question is about the path of the institution itself, as worries surface about the politicization of a central bank prized for its independence. President Donald Trump has excoriated the Fed, particularly Fed Chair Jerome Powell, for being “too slow” to cut interest rates — a move Trump believes will help ease the burden of federal deficits, as well as goose the economy overall and the housing market in particular. Though Trump has threatened, he has not tried to remove Powell.

But Trump has moved to fire Fed governor Lisa Cook, after a chief housing regulator accused her of mortgage fraud. The Justice Department has reportedly opened a criminal investigation into the matter. Cook has fought back with a federal lawsuit that seeks to confirm her status as a Fed governor and “safeguard her and the Board’s congressionally mandated independence,” according to the suit. Legal arguments hinge on whether Trump can fire Cook “for cause.” A U.S. District Court ruling keeps Cook on the board for now, but the case could wind up at the Supreme Court.

Meanwhile, Trump picked the chair of his Council of Economic Advisers, Stephen Miran, to serve out the term of a Biden-appointed governor who recently announced an early retirement.

“If the president succeeds in removing Governor Cook, we expect that he may secure a four-to-three majority of governors whose policy ideas align with his, and this has potential implications,” says Paul Christopher, head of global investment strategy at research firm Wells Fargo Investment Institute. “Specifically, a majority of governors might guide policy toward greater deregulation and much lower interest rates (and possibly higher future inflation) than the current Fed leadership has proposed.”

The Fed governors also approve the Reserve Bank presidents who take turns sitting on the committee that determines monetary policy, amplifying the power of the majority.

In the central bank’s 112-year history, no president has ever removed a Fed governor. “One reason America has been viewed as having an exceptional economy and capital markets is because of the independence of the Fed,” says market strategist Ed Yardeni, who authored a book about the Federal Reserve.

For now, weakening jobs data have all but guaranteed lower rates. The most recent Labor Department report showed more evidence of a moribund summer and “should cement a shift in the Fed’s thinking from worrying about inflation to worrying about labor weakness,” says BofA Global Research economist Aditya Bhave. BofA forecasts a series of Fed rate cuts totaling 1.25 percentage points by the end of 2026.

It’s worth noting that the Fed controls short-term rates but not long-term rates. Long-term bond yields have recently fallen precipitously, but that’s not always the case, even when the Fed is cutting. Last year, the Fed cut short-term rates by one percentage point, while 10-year Treasury yields rose a percentage point over roughly the same period.

“We could have a situation like 2024, with the Fed lowering rates and bond yields going up,” says Yardeni, who adds: “The administration seems to be making progress toward having a lot of political influence over monetary policy — but they don’t control the bond market.”

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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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.

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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.

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Kiplinger: Your new book is about becoming a financial caregiver for your mother after she grew seriously ill due to complications from spinal surgery. What is financial caregiving?
BP: Financial caregiving is when you step into somebody else’s shoes and take over their affairs. Most people are dragged into this role sideways and have no idea how the person they’re helping has been handling money.

When I started helping my mom, I knew nothing about how she had been running her household, and she wasn’t in a position to tell me anything after her back surgery. To keep the mortgage paid and the lights on, I had to figure out how she had been paying her bills by sorting through the papers on her desk.

What are the most important steps people should take to prepare for the possibility of becoming a financial caregiver?
BP: You need to make sure the person you’re going to take care of has two key documents: a durable power of attorney that legally allows you to make financial decisions on their behalf and, if you’re also going to be making medical decisions, a health care proxy.

And make sure you have access to those documents. If you can’t put your hands on them, you’re going to be stuck and might end up in court.

For financial matters, a lot of people think it’s enough to be a joint owner on an account with an aging parent, but that can be problematic. There may be one account that you’re a joint signer on but other accounts you need access to — brokerage accounts, credit cards, that sort of thing.

You need power of attorney for the cable company, the electric company, the lawn care company. You never know when somebody’s going to say they need power of attorney in order to process whatever it is you want to process.

What if the tables are turned? How can people prepare their loved ones to step into the role of financial caregiver for them?
BP: Put together what I call a cheat sheet and a death file. My mom did this for me. The cheat sheet lists all of the person’s medicines and their doses, surgical history, key doctors, their Social Security number.

The death file is everything you need if something happens to them, like their will or trust, a list of their accounts, birth certificate, life insurance contract and cemetery plot information.

What’s the hardest thing about managing someone else’s money?
BP: The hardest part for me was trying to maintain my mom’s very precise financial routine. My mom was always very particular about her finances and a little old-fashioned. She didn’t trust electronic banking. It was all paper statements and paper checks.

I was managing her finances from a thousand miles away, and I had to take care of things electronically. I always thought she was going to be mad at me. I was afraid the whole time I wasn’t living up to her standards.

My general advice is to keep people in the loop. The person you’re taking care of or a sibling is going to want some accounting. I kept a spreadsheet of money coming in and going out of my mom’s account and things I paid out of my own pocket that I then reimbursed myself for.

What is one thing you wish your mom had done to better prepare you?
BP: I wish we had talked more openly in the years before she got sick, because there were a lot of things that didn’t occur to us to talk about once we were in emergency mode. These were small things, like asking about certain missing pieces of jewelry, but still important.

The one that haunts me is that I think she had a storage locker in the basement of her apartment building that had my grandmother’s paintings in it, and I couldn’t find any record of it after my mom died. Maybe someday the building will call me and say they found it.

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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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.

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“As you get to the retirement red zone, you are getting close to bringing out your best plays,” says Matt Radgowski, CEO of Halo Investing. “You also have to recognize that whatever path you lay out, you have to revisit that consistently.”

When it comes to retirement, some mistakes are far bigger than others. Here's a look at the "doozies" — the errors that can force you to change your lifestyle or even return to work — and, crucially, how you can prepare now to avoid them.

1. You feel lost without your job

For many of us, our self-worth and sense of purpose are entwined with our jobs. We spend so much time at work that it's hard to separate it from the rest of our lives. It's where we find joy, social connections, accomplishments, and often pride. But when we retire, we lose that overnight.

That can lead to depression, which, if left unchecked, could be debilitating, especially if you want to return to work but find you can’t.

Thinking that work has to end the minute you retire is mistake number one, says Radgowski. Instead, he says people should approach retirement in phases. Start by reducing your hours, or move to part-time or consulting instead of retiring outright. If you can’t do that, line up volunteering work or a new part-time job before you exit the workforce so you don’t lose that sense of purpose or routine.

“You should plan for a glide path into retirement,” says Radgowski. "It doesn’t have to be a hard cutover," he says.

2. You're facing a retirement funding shortfall

Nobody wants to run out of money in retirement, yet it's a reality for many. Even with Social Security and savings, a sudden emergency or a period of high inflation can quickly create a shortfall, forcing retirees to drastically curb their lifestyle or return to the workforce.

But a retirement shortfall is a mistake that can be avoided, and Daniel Evans, a financial advisor at Bogart Wealth, says all it takes is planning. “The mistakes I see are not having a financial plan or at least not running the numbers and setting expectations,” said Evans.

Not only do you need a plan, but you have to stress test that plan, he said. “It's absolutely imperative. The longer you plan before retirement, the longer runway you have. That’s what helps that transition from working to retirement,” he says.

Evans says that in your mid to late 40s, you should get serious about your retirement plan, and in your 50s, you should fine-tune and revisit it.

3. You're bored and/or lonely

Retirement is supposed to be the time to check off all those bucket list items, to pursue those trips you never had a chance to get around to, and to spend quality time with friends, family and loved ones. But for some people, it ends up being a lot of idle time sitting in front of the TV.

The problem: they don’t have hobbies, friends or ways to spend all this newfound freedom. That boredom can be paralyzing, especially if you don’t know how to find a hobby or social connections.

It is also why Jeff Smith, founder of The Retirement Smith, says it's a big mistake not to have hobbies in place well in advance of your retirement date. “Lay the groundwork now while you’re still earning,” says Smith. “That way, you enter retirement with activities already in place.”

Evans recalls one client who retired from working as a safety engineer for an offshore drilling rig and never had any hobbies during his working life. But once he retired, he got involved in pickleball, which had a huge impact on the quality of his retirement life.

“He started to develop a network, and it also worked on his health; he lost weight and was in better shape,” said Evans. “It branched out into a volunteer position with a food bank. By avoiding a sedentary lifestyle and being active, it all snowballs into a compounding effect.”

4. Your health is suffering

Health care ain't cheap, and that’s particularly true in retirement. Even with Medicare, which kicks in at age 65 and covers about 80% of your health care expenses in retirement, Fidelity Investments estimates an individual will spend $172,500 in out-of-pocket expenses. That doesn’t take into account any illnesses, unexpected emergencies, or stints in a long-term care facility.

Despite the costs, many people don’t worry about their health in the run-up to retirement and face a shortfall when they do need long-term care.

The easiest way to avoid that is to live a healthy lifestyle. The healthier you are before you retire, the less money you’ll need to spend on your health in retirement. That’s not to say you won’t get sick — your family’s health history can give you insight into that — but you can avoid some chronic illnesses if you maintain a healthy weight, exercise regularly and eat properly.

“If you want to directly impact health costs in the future, making those healthy choices and avoiding a sedentary lifestyle is the most direct way you can lower the cost of health,” said Evans, noting it also increases longevity.

It's also worthwhile to plan for how you’ll cover any out-of-pocket health expenses in retirement ahead of time, whether it's through savings, a combination of savings and a Health Savings Account, or via long-term-care insurance.

Plan, plan and more planning

Retirement isn’t one of those things you can go into blindly or just say you’ll wing it. It requires a lot of preparation and planning, and then revisiting that plan over and over again until you retire. It shouldn’t be etched in stone, but rather a moving, flexible plan that can be altered as your goals change.

The sooner you get started planning and preparing for retirement, the better the likelihood you won’t make the mistakes of those who came before you.

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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.

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Sixty-two seems like the perfect age to retire. After all, you can start collecting Social Security. Plus, you're still young enough to enjoy it.

It's no wonder 62 is the average age of retirement in America. But retiring at that age or earlier could be one of the biggest mistakes a person can make.

At least according to retirement expert, author and podcaster Dave Ramsey.

“People underestimate how long they’ll live and how much money they’ll need,” Ramsey tells Kiplinger.com. “They retire broke or way too early. It's like jumping out of a plane without checking your parachute.”

This applies to the millions of people who choose to retire early, not the ones who are forced out of their jobs because of an illness, disability, workforce reduction, or a sick family member they have to care for.

Been There, Done That
Ramsey has seen it before. For over twenty years, the author, founder and CEO of Ramsey Solutions and host of “The Ramsey Show,” has helped millions of people get out of debt, take charge of their financial lives and achieve their retirement goals.

He speaks from experience. After running up thousands of dollars in debt and being forced to declare bankruptcy at age 26, Ramsey not only climbed out of the financial hole he created but went on to build a career teaching others how to achieve financial freedom.

The knock on retiring early

Retiring early is the dream of millions of Americans, regardless of whether that means exiting the workforce in their 50s or early 60s. While there are advantages to early retirement, there are also some clear disadvantages that make Ramsey staunchly against it.

For starters, if you retire before Medicare kicks in at 65, you will have to fund your own health care, which can get expensive. Plus, if you don’t plan to work at least part-time, you’ll have to figure out how to grow your savings and generate cash flow. With so many years without a steady income, there is a chance you could run out of money. If you retire at 62 and collect Social Security, be willing to take up to a 30% reduction in benefits for your lifetime.

All of this may be fine if you’ve saved enough for retirement and you're flush with cash. But if you rely on Social Security to supplement your monthly income, a reduction in your benefits because you retired early could impact your quality of life. Additionally, retiring early means less money saved, plus more years you have to draw from your savings.

“Don’t retire until you’re truly ready,” says Ramsey. “That means zero debt, a fully funded nest egg, and a clear monthly budget. Work longer if you need to, and budget like your future depends on it — because it does.”

Retire debt-free

Retiring with debt is another one of the biggest retirement mistakes Ramsey encounters. People think they can handle the monthly mortgage payment and/or car payment, but one unexpected illness or accident, and all of a sudden, they are in over their heads.

That’s why Ramsey says people should be entirely debt-free in retirement, including paying off their mortgage, regardless of a low interest rate. When you owe money, you can’t achieve financial freedom and security in retirement.

"They hang onto debt. Especially mortgages and car payments. Then they assume they’ll just ‘manage it’ in retirement,” says Ramsey. “The fix is simple. Attack that debt with intensity now, before you step into your golden years.”

It’s never too late to fix your retirement mistakes

Retirement isn’t the end of the road. If you make mistakes, such as retiring too early or with too little money, you have options to fix them. You can go back to work, downsize or reduce your budget.

If you haven’t retired yet, you can put in the work now to prepare for it or delay retiring to get yourself in a better position later.

"It’s never too late to start doing the right thing,” says Ramsey. “You may not have 40 years left, but you’ve got today. And that’s enough to start turning the ship around.”

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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.

Related content

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• 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?

They are so underutilized that Fidelity Investments found that one in two Americans is unfamiliar with the HSA and its triple tax benefits. There’s even a National HSA Awareness Day, which falls on October 15 each year, to spread the word about the benefits of this tax-advantaged savings tool.

“It’s drastically underutilized," says Jessica Nino, a financial advisor at Edward Jones. "Anyone currently not on Medicare on a high deductible qualifying plan can have one.”

What is an HSA?

With an HSA, you contribute tax-free dollars up to a limit to be used for qualifying health care expenses. The money in your HSA grows tax-free, and withdrawals for those health care expenses are tax-free. There is no use-it–or-lose-it rule attached to an HSA.

For 2025, the contribution limit is $4,300 for self-only coverage and $8,550 for family coverage. If you are 55 or older, you can contribute an additional $1,000. An HSA is only available with a high deductible health plan, which means a deductible of $1,650 for a single person and $3,300 for a family. Once you turn 65 and go on Medicare, you can no longer contribute to an HSA.

In 2026, contributions increase to $4,400 for self-only coverage and $8,750 for family coverage. The 55+ catch-up is unchanged. The deductible increases to $1,700 for a single person and $3,400 for a family.

How to get an HSA

If your employer offers an HSA, you can typically sign up during open enrollment and have contributions deducted from your paycheck automatically. The money will come out of your paycheck on a pre-tax basis. Some employers will even match your contributions to a certain limit.

If your employer doesn’t offer an HSA, you can still open one directly through many banks, credit unions, and investment firms. In this case, you would contribute funds straight from your bank account. However, it's important to do your own research and/or discuss it with a trusted financial adviser before opening an account.

If you have private health insurance, you can either select a financial institution on your own or one of the HSA providers that the health insurer teams up with. The process is the same otherwise.

Boost your HSA with these moves

Now that you know the benefits of an HSA, Nino says there are some moves you can make to get the most out of having one. After all, the money you’re saving in your HSA isn’t just sitting there. It is being invested and growing and compounding and hopefully becoming a nice nest egg.

1. Let the money grow over time. Assuming you are contributing the maximum and taking advantage of catch-up contributions, Nino says one HSA balance boosting move is an easy one: don’t use it.

“If you can pay for your current health care costs, that will then allow you to have options,” she says. "You can invest the HSA dollars and grow them tax deferred, like a Roth IRA, and then in retirement pull money out for medical expenses tax-free.”

While an HSA is not likely to cover all your health care needs in retirement — Fidelity estimates an average of $174,500 in out-of-pocket costs — it can help.

2. Pay yourself back for past medical expenses. Another strategy, aimed at pulling money out of the HSA tax-free, is to use past medical expenses to justify current withdrawals in retirement. For instance, if you pay all your qualified medical expenses out-of-pocket from your mid-50s until age 65 (when Medicare kicks in) and save every receipt, you can then withdraw all of that money tax-free from your HSA — as long as you have the corresponding documentation.

“There’s no time limit for you to pull out the dollars,” says Nino. Remember, if you use the money for non-qualifying health care expenses, you’ll pay taxes on the withdrawals.

If you got it, take advantage of it

HSAs are a tax-advantaged way to save for health care expenses now and into the future. Whether you can contribute the maximum amount allowed by law, or only a small amount, HSAs can help you cover the burden if you get sick.

The above tips can help you take advantage of something that already gives you a triple tax benefit–you can’t say that of many other savings products available to everyday investors.

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The banking industry is pushing for a legislative fix to the GENIUS Act, a law that established the first federal framework for stablecoins, a form of digital token that represents a fixed amount of a fiat currency, such as the U.S. dollar. While the GENIUS Act prohibits stablecoin issuers from directly paying interest to holders, firms including Coinbase and Circle have circumvented this restriction by offering “rewards” programs. In these arrangements, customers lend their stablecoins to a cryptocurrency platform, which then generates yield for the customers. Banks argue this is functionally identical to interest, and are asking Congress to close what they call a dangerous regulatory loophole by explicitly banning firms from offering such rewards to customers.

Banks say these interest-bearing stablecoins pose a serious risk to the economy. They argue that, unlike bank deposits, which are protected by FDIC insurance, stablecoin holdings have no such government backstop, exposing consumers to greater risk. Banks also argue that a significant shift of funds away from traditional, insured deposits, which are the primary source of funding for bank lending, could reduce the availability of everything from home mortgages to small-business loans, slowing the broader economy. The Treasury Department has amplified this concern, estimating potential deposit outflows of up to $6.6 trillion if stablecoins are permitted to offer competitive yields. The crypto industry counters that this is fearmongering by the banking industry, claiming that allowing rewards simply introduces much-needed competition that will pressure banks to provide more competitive interest rates to customers who have earned little on their savings for over a decade.

At least for now, Congress is siding with the cryptocurrency industry. Lawmakers from both sides of the aisle seem reluctant to pass a narrow fix for the GENIUS Act, fearing it could stifle innovation in a fast-growing sector. Some key Senate Banking Committee members have signaled they’re open to addressing the issue but prefer to do so within a more comprehensive crypto bill, such as the Digital Asset Market Clarity Act. Such a bill would establish rules for market structure, consumer protection and the roles of various regulators. Proponents of the comprehensive approach argue that a holistic framework is necessary to provide long-term clarity for the industry, rather than engaging in a legislative game of "whack-a-mole" with every new product. They believe that narrowly targeting rewards could stifle innovation and push digital asset companies offshore, undermining U.S. leadership in financial technology.

For now, the outcome of this fight is hard to predict, given that both sides are intensely lobbying lawmakers. The stakes are high for both sides, as banks aim to maintain their traditional role in taking deposits from customers and making loans to households and businesses, while stablecoin issuers seek to gain a foothold in the financial sector.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

Read more

• Would You Benefit From Investing in Cryptocurrency?
• The GENIUS, CLARITY, and Anti-CBDC Acts: What Bitcoin Investors Need to Know
• Is It Too Late to Invest in Bitcoin?
• The Best Bitcoin ETFs to Buy

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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Vanguard research shows that setting aside $2,000 can boost your financial stability by 21%. If you add three to six months' worth of expenses, you get another 13% bump, even after factoring in income, debt and other assets.

An emergency fund is the money you set aside to cover unexpected expenses during unforeseen circumstances, such as a job loss, medical situations and house repairs. But if you're oversaving for this fund, that can be a problem, unlikely as it might seem.

How come? We'll discuss the hidden risks of maintaining an overly large emergency fund, because saving too much could hurt instead of help.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

The problem with saving too much

Vanguard's report speaks volumes. It's wise to save to establish financial stability.

However, oversaving for your emergency fund can be problematic. You're missing out on other monetary opportunities that could potentially grow your wealth and provide a higher quality of life.

Signs you're saving too much:

• You've got more than a year's worth of expenses sitting in savings
• Your investment accounts and retirement funds aren't where they should be
• You focus on stashing cash instead of knocking out high-interest debt
• You feel uneasy about moving money into investments that could grow faster

Among the hidden financial risks of oversaving for your emergency fund:

1. Lost financial growth

When all your extra money sits in a basic savings account, it likely earns little interest.

Better options include a high-yield savings accounts with interest rates of up to 4.35% or in stocks, bonds, mutual funds and real estate investment trusts (REITs).

Andrew Bates, COO at Bates Electric, recommends establishing high-yield savings and investment accounts after building an emergency fund. He believes it's one way to avoid losing the financial growth you deserve.

"Parking too much cash in your emergency fund means you're missing out on real growth," Bates says. "A smarter move is to use high-yield savings for liquidity and put the rest into investments like stocks or REITs, where your money can actually work for you."

2. Potential inflation risk

As prices go up every year, savings slowly lose value, especially if you live in cities hit hard by inflation. As of August 2025, the inflation rate in the U.S. is 2.9%.

If your savings account for your emergency fund earns only 2%, your money is actually shrinking in terms of purchasing power. The more cash you stockpile, the bigger this hidden loss becomes.

Leon Huang, CEO at RapidDirect, suggests beating inflation through investment diversification instead of putting extra money in an emergency fund.

"Keeping too much in low-interest savings is like letting inflation chip away at your money," Huang explains. "Diversifying into assets like stocks and bonds helps preserve and even grow your purchasing power over time.

"Remember, don't let your savings sit idle when they could be working harder for you."

3. Financial opportunity cost

Every extra dollar in your emergency fund is money not working elsewhere. It's just sitting in a low-yield savings account when that money could be growing or improving your finances.

Use it to pay off high-interest debt, prepare for retirement or buy your dream home or start a business, for example.

The message is clear: Oversaving for your emergency fund means missing out on several opportunities.

Learn from Edward White, head of Growth at beehiiv. When he earns extra money from his income or business, he considers balancing various aspects of his finances.

"Cash that just sits in a savings account isn't doing you any favors," White says. "Redirecting that money toward paying off debt, building retirement funds or investing in your next big project creates real financial progress. At the end of the day, money should be a tool for growth, not just a safety net."

4. Psychological mindset trap

There's a line between being financially secure and overly cautious. Having a substantial amount of money can feel reassuring.

However, you could end up being financially trapped. For example, you avoid paying off loans and making investments because you're clinging to that "safety net." Over time, this mindset can hinder your financial progress.

Take it from Raihan Masroor, founder and CEO at Your Doctors Online. He once feared making investments and expanding his business by going digital. However, he quickly learned that this mindset means not making financial progress.

Masroor warns against the psychological trap of oversaving. "Clinging too tightly to cash can make you overly cautious and stall your growth.

"I've learned that avoiding investments or expansion out of fear doesn't protect you, but keeps you stuck. True financial security comes from balance, not from hoarding money."

Finding the sweet spot

The reason you're saving for an emergency fund is to prepare for unexpected situations or manage your fluctuating income. But if you've saved enough to be financially prepared for the rainy seasons, you can use extra cash for other financial opportunities.

Start by saving just enough for your emergency fund. There's no set amount for an emergency fund. The target largely depends on your income and expenses, as well as dependents and overall lifestyle.

According to most financial experts, the general rule is simple: Build three to six months' worth of living expenses.

This means that if you suddenly lose your job, for example, you can cover expenses such as bills and groceries for three to six months, or until you find new employment.

What to do with extra money

Once you hit your emergency funds target, use your extra money for other financial opportunities:

Debt payments (credit cards, personal loans, mortgage, etc.). It's more practical to use your money to settle debts, whether you're paying off credit cards or personal loans. It doesn't make sense to oversave for your emergency fund if you haven't zeroed out your debts.

Specific savings (education, real estate, travel, etc.). Put extra cash into a high-yield savings account, which will exponentially grow your money. You can also use this money to invest in your dream house, finance your children's future education or even find deals on your travel in 2025.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

Basic insurance (health insurance, life insurance, etc.). To protect yourself from financial risks, it's wise to invest in different types of insurance.

Consider getting medical coverage, whole life insurance, a dental policy and/or pharmaceutical benefits. Think of these as secondary emergency funds.

Investment diversification (stocks, bonds, mutual funds, REITs, etc.). It's a good idea to get strategic about your investments by diversifying your portfolio. Not only will this help grow your money, but it also reduces your financial risks.

Wrapping up

Building an emergency fund is one of the first steps to establishing your financial security. But if you oversave for this fund, you might lose investment growth and face inflation risks. You might be psychologically trapped, missing out on many financial opportunities.

Build three to six months' worth of living expenses, then, allocate extra money towards loans, savings, insurance and investments.

When it comes to money, it's a numbers game — be wise about saving and investing.

Related Content

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

Available exclusively for the benefit of children under age 18, this account was originally supposed to be a super-tax-advantaged way for young people to save for college, a first home or to start a business.

The final watered-down product, however, more closely resembles a traditional IRA — only without the benefits of tax-deductible contributions.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

As these accounts become available starting in 2026, many clients with young children (and expectant parents) will be asking advisers questions about them:

• How are they funded?
• What do they invest in?
• Are withdrawals taxed?
• How do they stack up to other savings options?

In most cases, other vehicles offer superior tax benefits, higher contribution limits and greater portfolio customization.

Advisers shouldn't be afraid to make these comparisons. But they need to be very careful if the alternatives they recommend to a Trump Account would earn them fees or other compensation. Doing so in a haphazard way could put them in the SEC's fiduciary crosshairs.

Trump accounts: Basic facts

For children born in 2025, 2026, 2027 and 2028, the U.S. government will open a Trump Account for them with a $1,000 contribution.

Starting in 2026, any parent will also be able to establish an account for a child who is under age 18 anytime before the end of 2028.

Once established, parents and other individuals will be able to make after-tax contributions of up to an aggregated total of $5,000 per year.

On top of this limit, employers and qualified charitable institutions will be able to contribute $2,500 to a child's account. These contributions will not count as taxable income.

It's not clear at this point whether this is a lifetime or annual contribution limit.

All contributions will be invested in a single low-cost, broad stock market index fund or ETF.

Earnings will grow tax-deferred until the child can start withdrawing them in the year they turn 18.

Then what?

At this point, it appears that a Trump Account essentially becomes, for all intents and purposes, a traditional IRA.

Like traditional IRAs, withdrawals from Trump Accounts will be taxed as ordinary income. And, like IRAs, the child may be hit with a 10% early withdrawal penalty unless withdrawals are used to pay for qualified expenses, such as:

• Higher education costs
• The purchase of a first home
• Expenses related to recovery from a federally declared disaster

Like an IRA, early withdrawal penalties will be waived once the account owner turns 59½. And, at the moment, it appears that annual required minimum distributions (RMDs) will be required if the account still has assets when the child turns 75.

Since contributions are made after-tax, it's not clear whether account owners will be able to withdraw contributed principal (not earnings) without tax consequences, especially if these contributions were made by someone other than the owner themselves.

What is it good for?

On the surface, the Trump Account looks like an easy way for parents to put away money for their children at an early age to give them a head start on saving for college or retirement.

But when you start comparing the Trump Account to other savings vehicles, its limitations stand out.

There are better college savings options

529 college savings plans allow parents, grandparents and others to make after-tax contributions up to a total aggregated lifetime contribution limit per account that varies by state (on average, it's about $402,000). In 30 states, a portion of 529 plan contributions is state-tax-deductible.

Contributions can be diversified across a mix of stock and bond funds, and all withdrawals are tax-free if they're used to pay for qualified educational expenses.

And these expenses aren't limited to college tuition.

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The OBBB now allows tax-free 529 plan withdrawals to pay for K-12 private school tuition, homeschooling expenses, tutoring costs, standardized test fees, educational therapies and post-secondary credentialing programs.

And if there's money left over in a 529 Plan, up to $35,000 in total can be rolled over into a tax-free Roth IRA established by the beneficiary.

Minor Roth IRAs are better retirement savings vehicles

Speaking of Roth IRAs, when a child starts earning their own income, their parents can establish a minor Roth IRA, also known as a custodial Roth IRA, that will allow them to contribute up to the amount the child earns or $7,000, whichever is lower.

The child takes ownership of the account when they turn 18, and any distributions they take after age 59½ will be totally tax-free. And, unlike traditional IRAs or Trump Accounts, RMDs are not mandatory for Roth IRA owners.

Even UGMAs/UTMAs may offer better tax benefits

Uniform Gifts/Transfers to Minors Accounts allow parents to contribute as much as they want to after taxes to establish these custodial trust accounts for their children.

Depending on the custodian, assets can be diversified across stocks, bonds, mutual funds and ETFs.

And while a portion of ordinary income and realized capital gains generated by earnings are taxable, investors (or advisers) can use tax-loss harvesting and strategic cost-basis step-up strategies to reduce investment taxes.

The risks of recommending Trump Account alternatives

Other than serving as a tax-deferred savings vehicle that can be funded as soon as a child is born, Trump Accounts offer few advantages over other kinds of savings accounts.

Investment advisers who agree with this opinion should feel free to express it to clients who ask about Trump Accounts, or express their opinions in public.

But if they recommend any of the alternatives mentioned above, they need to be very careful that their advice doesn't raise fiduciary red flags.

This is most likely to happen if, after hearing these recommendations, a client offers to pay the adviser to manage the investments in one or more of these Trump Account alternatives. Or if the adviser recommends their own managed solution.

In either scenario, the adviser's actions could be perceived as conflicted, since they might materially benefit from this advice.

And since an adviser's fee for managing these alternative accounts will probably be significantly higher than those charged by a Trump Account (whose annual fees cannot exceed 0.1% of the account balance), they may face a fiduciary quagmire in trying to explain how their recommendations are truly in their clients' best interests.

It's unclear whether the SEC will eventually provide guidance to help investment advisers navigate this fiduciary minefield.

So, until there's clarity, advisers may want to ask their firm's compliance officer to proactively develop their firm's rules of the road for guiding and documenting these kinds of comparative discussions.

Related Content

• The GOP Wants to Auto-Enroll Your Child in a Trump Account for Savings
• Three Major 2025 Tax Changes for Parents in 'Big Beautiful Bill'
• Could Trump Accounts Be the Best College Savings Option?
• How Google Reviews Can Help (or Hurt) Financial Advisers
• How Financial Advisers Can Share Their Clients' Good Words

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

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.

Related content

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• The Smartest Places to Keep Your Cash When Rates Drop in 2025
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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

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.

Related Content

• I’ve Got $50,000 Burning A Hole in My Pocket. Where Do I Park It Amid Rate Cuts So I Don’t Lose Ground?
• You'll Kick Yourself in the Fall if You Don't Make This Savings Move Now
• Are High-Yield Savings Accounts Still Outpacing Inflation?

While no one can precisely predict when, it's useful to consider how a lower rate environment could influence financial decisions related to housing, estate planning, taxes, investing and retirement.

Housing

Housing is often the most noticeable area affected by falling rates. A rate drop isn't a magic solution for your housing plans, but it is an opportunity to reset and gain flexibility.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

If mortgage rates decrease, mobility may increase, giving more families the freedom to buy, sell or relocate.

However, it's important to keep in mind the broader financial implications of moving, such as property and casualty insurance costs and availability.

Adjustable-rate mortgages (ARMs) taken out in 2021 or 2022 are nearing reset, and although refinance rates may not be as low as they were then, they still appear more favorable than current levels.

For some households, tapping into home equity via a HELOC might also be a smart option if borrowing costs decline.

What you can do: Review your mortgage and debt. If you have an ARM or other variable-rate debt, think about refinancing to a fixed rate while rates are still historically favorable.

A lower rate could also make it a good time to consider using home equity through a HELOC for planned expenses or debt consolidation.

Estate planning

Estate planning becomes more relevant in a lower-rate environment. Strategies like grantor retained annuity trusts (GRATs) and intrafamily loans become more effective when the IRS' Section 7520 rate drops.

It's easier to shift appreciation out of an estate when the so-called "hurdle rate" is lower, which can help preserve wealth for future generations.

What you can do: Reassess your estate plan. If you're a high-net-worth individual, consult with your estate planning attorney about strategies like a GRAT.

These become more effective when the IRS 7520 rate (a benchmark for trust asset valuation) is lower, enabling you to transfer more wealth to heirs tax-free.

Tax planning

Falling interest rates can suggest slowing inflation. Since federal tax brackets and the standard deduction are indexed to inflation, slower growth may lead to smaller upward adjustments. This could place more income into higher tax brackets.

Simultaneously, lower borrowing costs often boost asset values, increasing capital gains exposure — a beneficial challenge if managed carefully.

Lower rates may also encourage more charitable giving. Certain planned giving strategies become more advantageous if rates are lower.

For example, a charitable lead trust (CLT) might become more attractive than a charitable remainder trust.

It's worth noting that starting next year, a provision in the One Big Beautiful Bill (OBBB) will reduce the deduction for households in the highest tax bracket from 37% to 35%, so timing is critical.

What you can do: Analyze your tax strategy. A lower-rate environment may boost asset values, increasing exposure to capital gains taxes — a positive problem to have. Consider strategies like tax-loss harvesting to offset gains.

For charitable giving, a CLT might be more appealing, as lower rates reduce the gift tax value of the remainder interest.

Investing

In a lower-rate environment, diversification isn't just a strategy — it's your best defense.

Investments tend to respond strongly to changes in interest rates. Historically, large-cap stocks perform well when rates decline.

Companies benefit from cheaper borrowing, and investors often shift from bonds to stocks when yields fall.

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Nonetheless, diversification remains essential. While yields on new bonds may reset lower, the value of existing fixed income holdings typically rises.

Managing reinvestment risk alongside opportunities makes portfolio management more important than ever.

What you can do: Examine your asset allocation. While declining rates may favor equities, they also reduce yields on new bonds.

Ensure your portfolio balances growth-oriented assets (like stocks) with stable, income-producing assets (like bonds) to reduce longevity risk and support your long-term goals.

Retirement planning

Retirement planning also needs attention in a declining rate environment. Lower yields can make conservative portfolios more vulnerable, underscoring the importance of including growth assets that support long-term objectives.

A proper mix of fixed income stability and equity growth helps mitigate longevity risk in a world where bonds alone may no longer suffice.

What you can do: Update your retirement projections. Lower bond yields can impact the income from your retirement portfolio.

Run new projections using a more conservative income assumption from fixed-income assets to keep your spending plan sustainable.

Adjust your savings rate or portfolio mix as needed.

Putting it all together

The potential of falling interest rates isn't a signal to overhaul your entire financial plan, but rather an opportunity to review and refine it. A proactive approach is vital.

By understanding how these changes could impact your housing, estate, tax and investment strategies, you can position your finances to benefit from the new environment.

The shift toward lower rates highlights the timeless importance of a well-diversified portfolio and a long-term perspective. While short-term market reactions may grab headlines, the true measure of a sound financial plan lies in its resilience and adaptability.

I often remind clients that the goal isn't to predict the future but to prepare for it, whatever it may bring.

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

Inflation appears to be cooling, the job market is showing signs of softening, and at the August Jackson Hole, Wyoming, conference, Fed Chair Jerome Powell indicated that rate cuts could be on the table in upcoming meetings.

So why does this matter?

The Fed's goal is to keep the economy balanced — not too hot, not too cold. Think of it like Goldilocks' porridge: just right. The key tool it uses is the fed funds rate, which influences how much banks charge each other for overnight loans.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

This rate affects a wide range of borrowing costs, from credit cards to mortgages, but it primarily targets short-term interest rates.

Longer-term rates, like those on five- or 10-year loans, are shaped by more than just Fed policy. They reflect expectations about future short-term rates, inflation and market demand.

So, a rate cut doesn't automatically mean lower long-term borrowing costs.

Given that it looks highly likely that the Fed will lower rates in the near future, it's worth considering who would benefit from lower rates, who is hurt by them, and what to do if rates are going down.

Who benefits from lower rates?

Theoretically, anyone who is looking to borrow money benefits from lower rates, but due to the nature of the yield curve (the interest rate for different lengths of borrowing), not all borrowers benefit equally.

The type of debt that is most directly affected is variable rate debt with rapid resets. Things that tend to fall into this category are home equity lines of credit (HELOCs) and credit cards on the consumer side and floating-rate loans the corporate side.

Adjustable-rate mortgages also benefit from lower rates, but after the financial crisis, their use plummeted and are fairly uncommon today.

While it is always nice to get a break when a 27.5% credit card interest rate moves to a 26.5% rate, assuming the Fed eventually implements a cut of 1 percentage point, that probably won't help many people.

Arguably, the same is true for things like home equity lines, which tend to carry higher interest than mortgages.

More affordable housing via lower rates is often cited as a reason rates need to be cut now, and home sales are at a nadir in this high-rate environment.

There are a few issues with this argument, however. Most people finance their homes with 30-year mortgages, which are more closely tied to the 10-year Treasury rate, not the fed funds rate.

As markets expected higher inflation in the future, longer-term rates actually rose last year despite Fed cuts. That same phenomenon is happening now. In other words, rate cuts may actually hurt those looking to buy a home.

If mortgage rates do drop, we could see increased demand and further home price increases, offsetting the benefit.

Unfortunately, the real solution to more affordable housing is an increased supply of homes, complemented by lower rates and lower building costs.

For those looking to refinance, lower rates would clearly help, and an increasing number of homeowners are paying high rates. The general rule of thumb is to refinance when you can save 1 percentage point or more on your mortgage rate, which may be a way off for many.

Similarly, lower rates will make car buying cheaper, and the rising number of auto delinquencies shows that this relief is needed.

Who could feel the downside of lower rates?

A surprising fact about America is that we are a net saving population. You frequently see headlines lamenting the low average savings rate of Americans (which is a sad truth), but that belies the point that we do save.

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Importantly, many older and retired people are significant savers, and much of this money ends up in investments tied to interest rates. This means that lowering interest rates actually lowers the net income of the population.

Investors living comfortably by buying CDs and Treasuries will see a drop in their disposable income. The same is true for many corporations that have large balance sheets invested in bonds.

What should you do?

Now is a great time to assess any outstanding debt and monitor when it makes sense to refinance, especially if you have a mortgage rate above 7%. As rates decline, it can become more attractive to borrow an equity line and pay off any higher interest debt, such as credit cards, as well.

More important, perhaps, is thinking about locking in good interest rates now rather than waiting. Review cash positions in your bank accounts and make sure anything above a six-month cushion is generating good interest in CDs or other high-yielding investments.

If you have significant balances parked in high-yield savings, now is a great time to buy things like Treasuries to lock in rates.

Of particular note, for those in high-tax states, municipal bonds are trading at a historical discount and offer an opportunity to get tax-free income at very compelling rates.

As the environment changes, you should actively manage your exposure to interest rates to better position yourself for what may come next.

Bradley Thompson offers securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC (Equitable Financial Advisors in MI & TN), offers investment advisory products and services through Equitable Advisors, LLC, a SEC-registered investment advisor, and offers annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of California, LLC in CA; Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc., in PR). Equitable Advisors and Equitable Network are affiliates and do not own or operate New Canaan Group. PPG-8363243.1 (Exp 9/29)

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

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.

Related content

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“Your 50s can be a pivotal decade for retirement readiness,” says Sabino Vargas, CFP, senior financial advisor at Vanguard. “You may need to recalibrate your retirement expectations, but with 10 to 15 years ahead, there’s still time to make meaningful progress.”

People in their 50s are in an enviable position at this stage of the run-up to retirement. For starters, many are near their peak earnings period. They are making money and, as a result, should be saving more. They are also starting to see expenses decrease as their kids grow up and are no longer on the family payroll.

Time is on their side as well. Fifteen to seventeen years before retirement is a lot of time to save and benefit from compounding.

People in their 50s also have numerous options for boosting retirement savings, including the following six.

1. Resist the lifestyle creep

Lifestyle creep has been around for ages and occurs when your spending habits rise along with your income. It can hurt your ability to save and lead to costly debt.

“A lot of people fall victim to lifestyle creep. Now that they have more cash flow, they spend more,” says Tyler End, CFP and CEO/Co-Founder of Retirable.

To avoid lifestyle creep, create a budget and stick to it. Any excess money goes to your savings. Making it automatic can be a way to ensure you aren’t overspending.

2. Take advantage of catch-up contributions

The power of compounding can not be overstated. It's what fortunes are made of and occurs when the interest in your retirement savings account earns interest. Let’s say you have a $1,000 investment earning 7% return each year. After a decade, that investment will have almost doubled to $1,967.15 thanks to compounding. Without compounding, the return would be $700. The larger the balance and the longer it's invested, the greater the compounding effect.

An easy way to increase the amount of money that benefits from compounding is to take advantage of 401(k) and IRA catch-up contributions. For people 50 and older, catch-up contributions let you contribute more to your retirement savings accounts.

For 2025, you can contribute an extra $7,500 to a 401(k) or 403(b) and an additional $1,000 to a traditional or Roth IRA. If you are between the ages of 60 and 63, there are also super catch-ups, which let you contribute an additional $11,250 to your 401(k).

“I’d say maxing out of your retirement accounts — and taking advantage of catch-up contributions — is one of the most effective ways to accelerate savings in your 50s,” says Vargas. “These contributions may seem modest year to year, but they add up quickly — and with compounding, they can significantly boost your retirement readiness.”

3. Take advantage of a Health Savings Account

Health care in retirement can cost you as much as $172,500 during your lifetime, according to Fidelity Investments’ latest estimate. That’s a lot of out-of-pocket dollars you have to save for. One way is via a Health Savings Account or HSA.

With an HSA, the money you invest can roll over year after year. There is no use-it–or-lose-it rule. Plus, HSAs are triple tax-free. You get a deduction when you contribute, they grow tax-free, and you don’t pay taxes when you withdraw them for qualifying medical expenses. An HSA is only available with a high deductible plan, but if you are healthy and don’t foresee many out-of-pocket medical expenses, HSAs can be a way to amp up your savings.

There are limitations you need to be aware of. For 2025, the limit is $4,300 for self-only coverage and $8,550 for family coverage. If you are 55 or older, you can contribute an additional $1,000.

4. Pay off your debt

Here’s a quick way to boost your savings — pay off your high-interest-rate debt. Whether it's a credit card or personal loan, high-interest debt can eat away at your income and ability to save.

There are several methods to pay down debt, including the avalanche method, in which you pay off the highest interest rate debt first. You make minimum payments on all debts, and any extra money goes toward the debt with the highest interest rate. Once it's paid off, you apply the payment and any excess to the next highest interest rate debt.

The snowball method is another popular way to pay off debt. With it, you pay off your smallest debt first, making minimum payments on everything else. Once the first debt is paid off, that payment goes to the next smallest debt. This is replicated until everything is paid off.

5. Redirect more income to savings

Another strategy to boost savings is to review your spending to identify opportunities to redirect more of your income toward savings. It may seem difficult at first but even little lifestyle changes can be meaningful.

“Trimming discretionary expenses, eliminating lingering debt or even downsizing your home can unlock significant cash flow that you can put toward your goals,” says Vargas.

6. Keep risk in line with the time horizon

As we get closer to retirement, we are trained to pull back and get more conservative. After all, we need to protect the money we’ve saved. But retirement can last decades, which means your money still needs to grow. It can’t do so in investments that are too conservative.

“Shifting too heavily into low-risk, low-return assets like cash or short-term bonds can limit your ability to build the savings you’ll need,” says Vargas.

“While it’s wise to reduce risk gradually as you approach retirement, maintaining a healthy allocation to equities can give your money the growth engine it needs — especially if you’re planning to work into your late 60s or beyond.”

Stick to your newfound savings plan

Opportunities abound to save for retirement in your 50s, whether you trim your budget, take advantage of catch-up contributions or open an HSA. The key is to be disciplined, determined and committed to the saving strategies you choose.

Even saving a little extra each month can have a big impact on your nest egg over the next fifteen years.

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Food prices remain expensive, as beef prices have hit an all-time high, per Newsweek. Cumulative inflation shows the real impact consumers continue to face. Bankrate found prices are more than 24% higher than they were in February 2020.

If you're feeling inflation's squeeze on your finances, you're far from alone. Thankfully, there are ways of cushioning your finances against inflation, and one of the best ways to achieve this is by placing your money in high-yield savings accounts.

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 a 0.6% APY on average, making it far below inflation's 2.7% rate.

However, a high-yield savings account offers much healthier returns. Some of our top options, such as this one from Newtek Bank, give you a return of 4.35%, 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, that earns 4.35% APY. Here's how much you would earn in one year for opening the account today:

• $10,000 deposit: $435 in interest
• $25,000 deposit: $1,087.50 in interest
• $50,000 deposit: $2,175 in interest
• $100,000 deposit: $4,350 in interest

As you can see, this approach could help you earn significant gains effortlessly. This calculation assumes there will be no rate cuts in the next year from the Federal Reserve.

While that's unlikely, given the weak job numbers, inflation could prompt the Fed to continue its wait-and-see approach. This is important because high-yield savings accounts come with variable interest rates, meaning that if the Fed cuts rates, it will also drop your rate of return.

What savings alternatives should I consider?

If you're worried about rate cuts eating into earnings, another approach is to open a certificate of deposit. Unlike HYSAs, CDs feature fixed interest rates.

It means if you lock in your rate now and the Fed cuts them later this month, it won't impact 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 its maturity date. 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 awhile — 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 4.35%. This will also allow you to earn more money than inflation takes. However, as with a high-yield savings account, money market accounts come with 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 come with the fewest restrictions and only take a few minutes to set up.

Best of all, with rates as high as 4.35%, you'll earn a rate outpacing inflation, even if the Fed cuts rates and savings APYs drop. Therefore, if you're feeling inflation's squeeze, the right savings accounts can lessen its impact.

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However, enjoying the best of both worlds comes at a price, and sometimes a hefty one.

This is why it's important to consider the fees in advance to ensure this is the right option to maximize your savings.

Why money market accounts seem appealing

It’s easy to see why so many people opt for money market accounts. Being able to write a check from what’s essentially a savings account seems like freedom. Although it’s less common, some money market accounts even come with a debit card, usually with limits on transactions.

MMAs are also attractive because they sometimes offer higher interest rates than traditional savings accounts. Our top picks for the best money market accounts earn up to 4.35%.

Explore some of the top MMA accounts, using the tool below, powerd by Bankrate:

However, the returns are not as high as those offered on other investment options. Importantly, you might have to keep a certain balance to earn the high interest rate that first attracted you.

Most money market accounts utilize a tiered system tied to balance amounts. For example, you might earn the lowest possible rate on balances up to $9,999 and the highest possible rate on balances over $25,000.

Currently, the average interest rate on money market accounts is 0.59% APY, as of August. High-yield MMAs from online banks can offer interest rates over 4%.

Another bonus with MMAs is that the money should be protected against institutional failure by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration for credit unions.

Protection is up to $250,000 per account ownership type and per depositor, but it’s not a bad idea to check that the financial institution has coverage.

The most common (and costly) fees

Despite the appealing nature of money market accounts, fees can quickly eat into your savings if you don’t pay attention. Some fees can be waived or avoided in certain situations, depending on the financial institution’s rules.

Here are some of the most common money market account fees:

• Monthly fees: Many MMAs come with maintenance fees charged every month, typically from $10 to $25. If you maintain a certain minimum balance or set up qualifying direct deposits, some institutions might waive this fee.
• Fees for excess withdrawals: Many institutions set limits on the number of withdrawals you can make from your MMA in a month. If you go over, you might be charged a fee. Typically, ATM withdrawals aren’t included in limits, but every other type is, including transactions made with a debit card. The maximum number of withdrawals from an MMA is around six per month.
• Minimum balance fees: Keep an eye on your balance because some institutions charge a fee if it falls below a certain amount. This can be as little as $1,000 or much higher, depending on the institution.
• ATM fees: If your MMA comes with a debit card, be wary of using it to withdraw from an ATM. Some institutions charge a fee even when withdrawing from their ATM. If that’s not the case, you can be sure there’ll be a fee when withdrawing from an ATM outside their network.
• Overdraft fees: Like many other bank accounts, MMAs typically charge a fee if you overdraw the account. These fees can range from $30 to $35 per transaction.
• Fees for closing the account too early: Be sure you want the account, and pay attention to the minimum holding period. Some institutions charge a fee if you close your MMA too soon after opening it.

Real-world examples: How money market account fees eat into returns

One of the simplest ways to see how MMA fees can eat into your returns is to check the fees you’re charged in a given year against the interest earned.

For example, if you have a money market account that charges a $10 maintenance fee every month, the $120 in maintenance fees over a year would potentially negate much of the interest earned, especially if you didn’t add anything to your balance.

Now consider your possible earnings: 4.35% interest annually on a $5,000 balance, for example, would earn you $217. So, in this instance, you would save less than $100 a year, given the fees.

Another way fees eat into your savings is through compounding. Every time a fee is deducted from your balance, it means that a lower balance earns less interest in future months, resulting in diminished compounding.

Alternatives: High-yield savings or no-fee MMAs

With so many potential fees eating away at your savings, money market accounts might not be the best option for everyone. However, not every MMA charges fees, so it pays to shop around. Here are some examples of no-fee MMAs:

• Sallie Mae Online Money Market Account
• Synchrony Bank Money Market Account
• Ally Money Market Account
• Discover Money Market Account

While the above options don’t charge monthly maintenance fees and have a $0 minimum opening balance and deposit, they may have other fees attached to them that can easily be avoided.

For example, if you avoid overdrawing the account, you won’t have to worry about overdraft fees, whether or not the institution charges them.

Alternatively, if you don’t care about being able to write checks from the account, you might opt for a high-yield savings account instead. Many high-yield savings accounts offer rates over 4%, making them an attractive alternative to an MMA.

Tips to protect your savings

The most important thing to remember when shopping around for money market accounts is to carefully review the list of applicable fees. Those monthly maintenance fees can be especially hard to avoid — and they can be the biggest culprits when it comes to eating away at your savings.

It’s also important to verify that they have insurance with the FDIC or NCUA. If they do, keep your balance within the insurance limit and track your minimum balance versus any minimum required by the financial institution. Finally, stick to any withdrawal limits placed on the account and monitor interest rates for better deals.

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Pretty much every modern president would prefer to serve in a low-rate environment, but none has been as vocal about that desire as President Donald Trump.

Weaker economic data that has recently come to light via a revision and a messenger shot (metaphorically, of course), mean that the president might get his wish in September.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Our retired clients have largely benefited from higher rates, as they have mortgages that were either refinanced around 3% or paid off. They typically don't carry consumer debt and often have the ability to pay for a car in cash when it makes sense.

On the flip side, these retirees have benefited from rates hovering between 4% and 5% on cash-equivalent investments, bonds are actually paying a coupon, and if they want guaranteed income, annuities have come back into favor.

If the Fed announces any significant cuts, mortgage rates are likely to come down. Millennials and Gen Z will breathe a sigh of relief, but Boomers will wish they'd taken advantage of what was available.

Here are three ways to avoid that regret.

1. Lock in cash rates beyond one year of expenses

The money market instruments we use with clients have yields that typically adjust every seven days. When/if the Fed cuts rates, these are one of the first instruments to come down with the federal funds rate.*

If you're very conservative or are using some sort of bucketing strategy where you have more than one year's worth of expenses, you might want to lock in rates for any amount greater than your first year of expenses. Certificates of deposit (CDs) from one to five years are very competitive. Treasury securities over the same terms are similar.

Multiyear guaranteed annuities (MYGAs) are similar in structure to CDs but are offered by insurance companies. They'll allow you to guarantee a competitive rate and defer income taxes until the end of their term.**

If I'd told you a few years ago that you could get about 5% in something guaranteed, I'd have had to tie you down to keep you from putting all your money there. I'm still in the boat of not overallocating to cash, but maximizing the yield on what you have in cash.

2. Look at guaranteed income

MYGAs are a type of fixed income designed for accumulation. MYGAs' cousins are fixed annuities structured for income. Fixed annuity guarantees in both forms are more attractive when interest rates are high.

Deferred income annuities (DIAs), single-premium immediate annuities (SPIAs) and indexed annuities with income riders all look a lot better than they did from 2010 to 2022.

These guarantees are a bit opaque in that you don't know exactly when they'll drop if the Fed cuts rates. But if you're thinking about retirement income and would like to guarantee some portion of it in exchange for liquidity and some upside exposure, it's worth looking into.

We lean on our planning software to compare your current situation with what it would look like with some amount of guaranteed income. Sometimes, it helps. Other times, it doesn't. You can access a free version of what we use here.

3. Re-evaluate your asset allocation

Financial companies benefit from a rising-rate environment. Three years ago, they would charge you 3% for a 30-year mortgage. Today, it's about 7%.

Are they paying you the full 4% delta in your checking account? They keep that spread, and spreads often increase as rates do.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

Real estate investment trusts (REITs) benefit from falling rates because they can buy more with the same interest rate. The point is that different asset classes and sectors do well in different environments.***

If you are a DIY investor, it's probably going to take too much time and effort to try to increase or decrease exposure based on the interest-rate environment.

However, if you're working with a financial adviser, they should be paying attention to where we are and where we might be going.

A few years ago, the acronym TINA was popular, signifying the belief that There Is No Alternative to investing in stocks.

Stocks probably should still make up a significant portion of your portfolio, but for the other parts, there are many alternatives.

* Investment in a money market fund is neither insured nor guaranteed by the FDIC or any other government agency. Although money market funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in these funds.

** Annuities have fees, risks, limitations and restrictions. Withdrawals can be subject to income taxes and, if made before age 59½, to a 10% IRS penalty; surrender charges can also apply. All guarantees and benefits of the annuity are subject to the financial strength and claims-paying ability of the issuing insurance company.

*** Investments in Real Estate Investment Trusts (REITs) involve risks, including the potential loss of principal, illiquidity, and fluctuations in market value. Investors should carefully review all offering documents, risk factors, and tax considerations before making any investment decision. REITs may not be suitable for all investors.

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

The wealthy tend to view money differently. Instead of focusing only on spending, they treat money as a tool for ownership, growth and opportunity.

You don’t need to come from wealth to build it yourself. Here are five rules that separate the wealthy from everyone else.

1. They prioritize ownership over consumption

The rich know the best way to spend money is on things that will grow in value or generate income, not just lose worth over time. Assets build wealth; liabilities drain it. A house, for example, is an asset because homes usually rise in value. A car, on the other hand, is a liability because it starts losing value the moment you drive it off the lot.

Investing in assets can mean the difference between a healthy nest egg and an empty bank account later. That might look like buying a duplex and renting out one unit to help cover your mortgage. Or it could mean contributing to your 401(k) instead of overspending on nights out, so your money earns dividends for decades. It might even mean building a side hustle that can grow into a business.

Consuming time or money may be more fun in the short term, but wealth comes from consistently choosing ownership and long-term growth.

2. They let money work for them

One of the most powerful tools for building wealth is available to everyone — compound interest. It’s the process of earning interest on your principal, reinvesting that interest, and then earning even more interest on the total.

The formula is simple; all it requires is time and consistency. The earlier you start investing, the more your money can grow. For example, setting aside just $50 a month from ages 23 to 28 can grow to $3,450.44 (with a 7% return and annual compounding).

If you then increase your contributions to $300 a month at age 28, you’ll end up with $619,391.51 by age 65. Without those early years, you’d only have $577,214.65 — a difference of more than $42,000.

Starting early doesn’t just give you more money; it helps you build the habit of living below your means. Still, it can be tempting to spend or dip into investments. The wealthy know better — they let their money grow untouched. If you leave a job with a 401(k), for instance, the smart move is rolling it into another retirement account, not cashing it out into a checking account.

Compound interest is one of the biggest secrets of wealth — but it can also work against you. Stay in debt, and you’ll find yourself on the losing side, paying more and more in interest instead of earning it.

3. They play the long game

You’ve probably heard about the marshmallow experiment, a psychological test where children were told they could eat one marshmallow right away or wait and receive two later. The kids who held out showed the power of delayed gratification — trading short-term pleasure for a bigger reward in the future.

Wealth works the same way. The most important ingredient isn’t luck or timing — it’s patience. Money needs time to grow whether through investments, real estate or business ownership. Get-rich-quick schemes promise shortcuts but usually waste both time and money.

The wealthy understand that compounding, appreciation and opportunity all take years to unfold. That’s why they don’t chase fast returns; they stay consistent and let time do the heavy lifting. Patience isn’t just a virtue when it comes to building wealth — it’s a requirement.

4. They treat financial literacy as an ongoing practice

Some investing fundamentals never go out of style: invest early, avoid chasing fads and diversify your portfolio. But other factors do change over time. If you don’t keep up with new policies, tax rules or shifts in the market, you could end up making outdated decisions.

That’s why financial literacy is a lifelong habit. Staying informed helps you adapt as the economy evolves, and the right financial adviser can fill in gaps if you don’t have the time or interest to track everything yourself.

A good adviser can also guide you through bigger wealth-building strategies like estate planning, tax optimization and retirement readiness. They can point out if you’re falling short of your savings goals or help you adjust during tough times like job loss or the death of a spouse.

5. They know the power of networks and negotiation

There’s an old saying: your network is your net worth. The wealthy take this seriously. Even at events that may seem dull — like cocktail parties or alumni mixers — they see opportunities to meet a future boss, business partner or mentor.

Connections don’t just lead to jobs. They can help you land better deals, meet the right hiring manager or get advice when you’re changing careers. But building a network isn’t about showing up once and expecting a miracle. It’s about consistency. When people see you regularly, they’re more likely to trust you and want to help.

You don’t need a circle of wealthy or powerful friends to benefit. Your network might come from classmates, neighbors or former coworkers. Anyone you meet has the potential to become a resource if you put in the effort to build genuine relationships.

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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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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. However, you don't have much time to act.

The Federal Reserve cut rates at each of its last two meetings. And it's likely they will issue another cut when they meet next week. It means now is an excellent time to capitalize on higher rates before they drop.

Why are the Fed cutting rates?

The Fed issued two rate cuts largely due to a shrinking job market. Although the government won't release the latest job numbers until mid-December due to the prolonged government shutdown, ADP reported an overall loss of 32,000 jobs in November.

When this happens, one way to stimulate job growth is by cutting rates. Doing so makes it cheaper for businesses to borrow money, which in theory would make it more cost-effective to create more jobs.

The problem is that savers will feel the pinch. When the Fed cuts rates, it means savers face lower returns on all savings accounts. It's why timing matters when choosing the right account.

Now is the time to maximize returns before CD rates drop

One route to turn to now that'll protect your money from rate cuts is CDs.

A certificate of deposit 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 you find options that work best for your needs:

And if you are sitting on a wad of cash, I'll show you how a balanced savings approach can maximize yields now while gaining flexibility back to some of your money 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 is Limelight Bank. You'll earn 4.15% with a minimum deposit of $25,000. In that year alone, you'll earn $1,037.50 effortlessly.
• Deposit $20,000 into a five-year CD. Our top pick is SchoolsFirst Credit Union, with a rate of 4.15%. Over five years, that'll earn you $4,509.04
• 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 $5,695.80 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 not a flexible savings vehicle for the most part. Term-based CDs require you to keep the money saved until maturity, or face significant withdrawal fees. For shorter-term CDs of a year or under, this could equate to a few months of interest earned.

Meanwhile, long-term CDs of five years could face penalties of up to one year of interest earned. Therefore, only take this approach if you're comfortable setting aside $25,000 for the next five years.

You must act soon, as more rate cuts are likely coming. Therefore, if you want a risk-free savings option resistant to rate cuts, this approach helps you maximize returns now, while rates are higher.

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“That set a precedent, and I thought ‘I’m going to do that for my grandchildren,’” she adds. Today, with five grandchildren aged from 12 to 3 years old, and a sixth on the way, she has 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 $82.4 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, according to Susan Hirshman, director of 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 absolutely sure you are 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, according to 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 is 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. And 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 2025, those were $110,000 for single filers, and $220,000 for married couples.

Unlike 529s, Coverdell contributions cannot exceed $2,000 per beneficiary per year, according to the IRS. While two sets of grandparents — or anyone — may 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. And they do 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 lo and behold, her grandparents take over the payments (no tax deduction) when she graduates.

9. Reevaluate your plans

In a perfect world, everything you plan in 2025 will play out for the next 20 or 30 years. But, alas, we do not 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. Who knows, maybe changes will be positive.

10. Just do it

Yes, there are many hoops you can jump through to gain tax deferrals and savings, but grandparents can also just 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. Of course, 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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With fixed-income investments, such as bonds, you put up your money for a specified period and receive interest income during that time, just like making a loan. They performed poorly for over a decade following the 2008 financial market crash. Market interest rates were near zero, and these assets paid little.

Today, interest rates are closer to their historical average, so fixed-income assets, which also include CDs, money-market funds and some ETFs and mutual funds, provide a more reasonable return along with safety.

So find the right balance for you. That depends on your goals and, most importantly, your risk tolerance. The rule of 120 suggests that you subtract your age from 120. That’s the highest percentage you should have in stocks, with the rest in either cash or fixed-income. Another strategy is to have at least five years of living expenses in cash and fixed-income, so you have plenty of time to wait out stock market downturns in retirement.

“If you were losing sleep during all that market volatility, it likely says you’re taking on too much risk and should move into more fixed-income,” says Rosenstrock.

Here are some types of fixed-income investments, offering different balances between return and risk:

U.S. Treasuries

The U.S. government issues Treasuries in the forms of bills, notes and bonds to borrow money from investors.

The Treasury return is often referred to as the risk-free rate, showing the confidence investors feel in the U.S. government to make promised payments.

U.S. Treasuries are available for periods running from four weeks to 30 years. Treasury bills (a.k.a. T-Bills) mature in a year or less; T-Notes mature in two to 10 years, and T-Bonds mature in 20 or 30 years. Currently, Treasuries are paying 4% to 5% a year, and the interest payouts are taxable.

Important: The value of Treasuries can fluctuate, depending on current interest rates. Hold to maturity, and you get all of your principal back. But if you cash out early, the value is what the market says that day. If rates have gone up since your initial purchase, the value of your Treasury will fall. If rates fall, value goes up.

Since interest rate trends are unpredictable, one strategy is to spread your money over Treasuries maturing at different times, known as a ladder. That way, if rates fall after your initial purchase, you have some cash still locked in at higher rates, and if rates rise, your short-term Treasuries will mature sooner, returning money to reinvest at higher rates.

TIPS and STRIPS

There are variations of U.S. Treasuries. Treasury Inflation Protected Securities (TIPS) allow you to earn more interest should inflation go up, but less if inflation falls. The amount you get back at maturity can also be higher than you paid when inflation is high.

Treasury STRIPS (Separate Trading of Registered Interest and Principal of Securities) do not pay interest income. Instead, you pay a smaller amount upfront, and your return comes from a larger payout at maturity. For example, you pay $6,755 for a STRIP that guarantees a $10,000 repayment in 10 years, roughly a 4% annual return.

One drawback, though, is that you owe income tax on the assumed return each year, even though you don’t receive the ongoing interest income. To avoid tax on this phantom income, keep STRIPS in a tax-deferred retirement account.

Municipal bonds

State and local governments issue municipal bonds to raise money. They are a little riskier than Treasuries, as there is a greater chance that these governments might run into financial trouble and fail to make their promised interest payments.

In exchange, municipal bonds can earn a higher after-tax return on your money because municipal bond interest is exempt from federal taxes (although not from all state income taxes). If you are in the 24% tax bracket, the tax-free payout on a 4% muni-bond is equivalent to a Treasury paying 5.26%.

Corporate bonds

Companies also issue bonds. The safety of the bond depends on the organization behind it. Independent agencies, such as Moody’s and Fitch assign companies a credit rating. Companies with a BBB- or higher credit rating are considered investment-grade bonds. The agencies deem these bonds as more likely to pay their creditors as promised, with the higher the score, the better the company’s creditworthiness. Investment-grade bond yields are averaging a little over 5% on the Bloomberg U.S. Corporate Bond Index.

On the other hand, corporate bonds with a rating of BB+ or lower are known as high-yield or junk bonds. These companies are more likely to miss payments, and if the company encounters serious financial trouble, it may not repay your principal. In exchange, they pay much higher interest rates. The S&P U.S. High Yield Corporate Bond Index earned an 8.89% annual return over the last three years.

“Are junk bonds risky? You bet, but so is the stock market," says Robert Tipp, head of global bonds at PGIM, Prudential’s investment management division. He notes that while losses in junk bonds are possible, a diversified portfolio with bonds from different issuers has historically experienced much less severe annual losses than the stock market.

Preferred stock

Preferred stock is a hybrid of stocks and bonds. Preferred stock shares receive fixed dividend payments, ranging from 6% to 9% a year. However, those payments are not promised by the company, unlike bond interest. If a company encounters financial difficulties, it could temporarily suspend payments. Depending on the terms, the company may catch up on missed payments later or it may not.

On the other hand, preferred stockholders take priority over common shareholders in receiving dividend payments. However, if the company does well, the preferred stock shares do not appreciate in value like common equity on the stock market.

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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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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"At the time, most credit unions weren't willing to jump into the market," says Kian Sarreshteh, CEO and co-founder of InvestiFi.

The environment for cryptocurrency is much more favorable today. Bitcoin went above $124,000, an all-time high, earlier this year, while many other coins are notching milestones of their own.

Crypto stocks are also red hot, as evidenced by the impressive price action in cryptocurrency platform Coinbase Global (COIN) and the strong public offerings of CoinDesk owner Bullish (BLSH) and stablecoin provider Circle Internet (CRCL).

In the meantime, the regulatory environment is much more amenable, as seen with the recent passage of the GENIUS Act, short for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which provides a framework for stablecoins.

There is also the recent regulatory guidance from the National Credit Union Administration, which has made it easier for credit unions to provide crypto services through partnerships with licensed service providers.

"These relationships allow credit unions to facilitate crypto investing without directly managing or holding the digital assets," says Felix Shipkevich, special professor of law at Hofstra Law.

In light of these developments, credit unions have shown growing interest in welcoming digital investing solutions. In the case of InvestiFi, it's continuing to partner with notable institutions such as Florida's Ocala Community Credit Union, Nevada's Clark County Credit Union and Oklahoma's Citizens Bank of Edmond.

"Credit unions are realizing that if they don't offer crypto to their members, their members are going to engage in crypto anyway and transfer their money to third-party crypto platforms to do so," Sarreshteh says.

Let's look at the type of services credit unions are offering their members, as well as the pros and cons for investing in crypto.

What types of crypto services are credit unions offering?

Generally, a credit union will use a technology partner such as InvestiFi to manage crypto services, including the buying and selling of digital assets.

This allows consumers to have a more robust offering, with access to mobile apps, a wide variety of cryptocurrencies, and high levels of security and risk management.

Credit union members can make transactions through their bank account, which makes the process convenient. The fees are usually competitive, too.

"Most credit unions are finding a happy medium with transparent transaction fees to the members that are lower than most major crypto exchanges and also don't have nearly as high of spreads as many of the platforms," Sarreshteh says.

The spread is the difference between the bid and ask price on a crypto transaction. This is a way that some cryptocurrency exchanges will disguise fees, even though they claim to be "commission-free."

The pros and cons of crypto investing

One of the main benefits of bitcoin and other cryptocurrencies is to allow for peer-to-peer electronic cash transactions that do not rely on governmental or financial institutions.

Built on blockchain technology, these assets record transactions in a publicly accessible ledger secured through cryptography.

"Cryptocurrencies can be traded or transferred 24/7, often at a fraction of the cost of traditional methods, and are especially useful for international payments," says Philip Martin, chief security officer at Coinbase. "They create opportunities for diversification, more efficient transactions, and greater financial flexibility."

However, for many people, cryptocurrencies are about the potential of making attractive returns. This type of investment is emerging as an asset class, similar to stocks or bonds.

Yet the volatility can be extreme. Within minutes, the price of bitcoin and other cryptocurrencies can make a dramatic move higher or lower, with little or no apparent reason.

Because of this, it's important for investors to evaluate their financial goals and tolerance for risk. It's usually a good idea to talk with a financial adviser.

One very important note: When investing in crypto through a credit union, the deposit insurance, which is similar to the FDIC insurance that protects your money at a bank, doesn't apply to digital assets.

"At InvestiFi, we thoroughly vet our crypto custodial partners, which are all regulated trust companies," Sarreshteh says.

"They all carry a certain amount of private insurance. While this does not cover all types of events of lost crypto and is not always dollar-for-dollar coverage, it is more than what you would get on almost every other crypto exchange or wallet."

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The Consumer Financial Protection Bureau (CFPB) filed a lawsuit in December 2024 alleging the same thing, but when that lawsuit was dropped in March 2025, New York's attorney general decided to file a suit of her own against the digital payment service to seek compensation for New York consumers.

The new lawsuit claims that Early Warning Services, LLC (EWS), the company that owns the Zelle app, knew fraud was a problem on the app but chose not to do anything about it. In response to the news, a Zelle spokesperson called the lawsuit "a political stunt to generate press, not progress."

The Zelle statement added: "More than 99.95% of all Zelle transactions are completed without any report of scam or fraud – which leads the industry."

If you've ever used Zelle to send or receive money, you know how convenient and quick it is. You have probably also heard about the many forms of fraud and scams that swindle unsuspecting users. Here's what you need to know about the New York lawsuit against Zelle and some tips to avoid being scammed when using payment apps.

Why the lawsuit blames Zelle for $1 billion in fraud losses

The short version of the charges by the New York attorney general's office is that EWS failed to implement safeguards that would have protected users from fraud.

The lawsuit alleges that after receiving repeated reports of fraud, EWS chose not to adopt basic safety measures that it had the technology and know-how to do. As a result, the lawsuit claims, consumers lost over $1 billion while the company profited from the app's rapid growth.

By the time the company adopted basic safeguards in 2023, the New York attorney general says that the measures were essentially too little, too late. She is now asking that Zelle pay stolen funds back to New York consumers who have been hit by fraudsters on the app.

Here's a quick timeline of what happened, according to the lawsuit:

• In 2017, the Zelle payment app was launched by EWS, a company co-owned by seven of the nation's largest banks – Bank of America, Chase, Wells Fargo, Capital One, Truist, PNC Bank and U.S. Bank. The app was rushed to market to compete with fast-growing rivals like Venmo and Cash App, the lawsuit says.
• Also beginning in 2017, EWS ran multiple ad campaigns emphasizing the app's safety and security. That included leveraging its connection to big banks that allowed the online payment system to be automatically integrated directly into users' existing mobile banking apps. One ad said Zelle is "backed by the banks, so you know it’s secure."
• By 2019, fraud was a problem, but the company hadn't adopted security measures to combat it, including not requiring banks to report fraud, the lawsuit claims. While it did require banks to report takeover fraud (when your account is hacked into or otherwise accessed without your permission), EWS was lax about the timing of reporting, the lawsuit claims, which gave fraudsters more time to "victimize additional consumers."
• In 2019, EWS developed a framework of "basic network safeguards" that could have made certain types of fraud more difficult. But, "EWS abandoned the basic network safeguards," the lawsuit says, opting for a less effective alternative.
• In 2023, the company implemented the "basic network safeguards" and fraud immediately decreased, suggesting that hundreds of millions of dollars could have potentially been saved in the years between 2019 and 2023 if EWS had adopted those safety measures when it first developed them. This is the main thrust of the attorney general's lawsuit.

Zelle's easy-to-use payment platform is just as easy to use for fraudsters

The same features that make Zelle so convenient for you also made it an easy target for fraudsters, according to the complaint filed by the New York state attorney general's office.

Some of the security gaps the lawsuit claims were present before "basic network safeguards" were implemented in 2023 included:

• A "quick registration process and lack of verification," making it easy for fraudsters to sign up.
• "Limited information displayed" when sending money to someone, making it easy for scammers to trick people into sending money to fraudulent email addresses.
• The immediate availability of funds after a transfer, making it easy for fraudsters to take the money and run, and next to impossible to claw those funds back if you're a victim.
• The ease with which users could change email addresses, link to different bank accounts or link to accounts at different banks, making it easy for scammers to juggle multiple scams at once and evade detection.

The complaint filed by the New York attorney general claims that basic safeguards could have helped protect many consumers from fraud.

As an example, the New York complaint describes a scam in which a fraudster registered on Zelle using an email with "Coned Billing" in the name — Con Edison is the major utility provider in New York City — and sent messages to users claiming they owed money and their power would be shut off if they didn't pay. The complaint says that if EWS had implemented a system for flagging potentially misleading email addresses, that email could have been blocked.

Protect yourself from fraud when using payment apps

While it's too early to say what will happen with the lawsuit in New York, there are steps you can take today to protect yourself from fraud or scams.

Here are a few of the most impactful steps:

• Know how easy it is to impersonate trusted people or organizations. Just because the name reads "Coned Billing" or otherwise looks familiar doesn't mean it's actually attached to the account in question. For individuals you send money to, get their payment app information from them in person and save it in your payment app ahead of time so you can easily spot a false contact.
• Know that you often can't get your money back from a scam. Zelle, and some participating banks, differentiate between "fraud" and "scams." Fraud is when someone takes money out of your account without your knowledge or permission. In many cases, banks will usually refund this type of theft. A scam, on the other hand, is when someone tricks you into voluntarily sending them money. Because it was technically voluntary, albeit through deception, some banks won't refund this type of theft. So, if you're ever in doubt, it's better to be too cautious.
• Hang up and verify before giving any personal information or sending money. Nothing is so urgent that you can't take a few minutes to verify the information you're being told. Even if the person knows certain details about you, hang up (or ignore the email). Then, go to the organization's website and use the contact information found there to call back.
• Question unusual or unexpected payment requests from loved ones. No matter how urgent or legitimate it seems, always hang up (or ignore the text/email) and call the person back by calling the number saved in your contact list. If it's that person, they won't mind you taking that minute to verify.
• If you really do owe money, pay it the way you normally would, not through a payment app. If your utility company or bank claims you owe money, you don't need to pay them right there via a payment app. You can log into the online portal where you usually schedule bill payments and see any balance owed there. Then, set up a payment using your usual methods. If online portals aren't available for a particular company, verify the amount owed in person and make the payment that way.
• Monitor your accounts regularly for unusual activity. Check your checking and savings accounts regularly, along with any credit cards you have. If you spot a transfer or charge that you don't recognize, call your bank right away. At the same time, change your password for accessing that account and consider locking the card or the account altogether while sorting out the issue with your bank.

Fraud prevention starts with awareness and caution

Regardless of the lawsuit’s outcome, this case is a reminder to stay vigilant when using payment services like Zelle. While providers should implement safeguards to keep scammers out, you should still be cautious and trust your instincts if something feels off.

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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 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 risk factors for dementia are complex. While lifestyle factors can be modified, others are impossible to change, such as your age and genetic makeup.

Although doctors can use tools to determine a patient's risk of heart disease, at present, there's no reliable tool for predicting someone's dementia risk. Symptoms can also be mistaken for other conditions.

How can we be on the lookout for cognitive decline in our loved ones? A recent study suggests a surprising answer.

According to research published in the Journal of the American Medical Association (JAMA) Network Open, our banking habits and our household bills could provide early warning signs of cognitive decline. If we're alert to those signs, it could make timely intervention — including heart-healthy lifestyle changes — possible.

Here's what the research showed, along with some details about signs of spending shifts that you and your loved ones might want to look out for.

Signs of financial incapacity

The researchers looked at anonymized banking records from more than 66,000 individuals. They also reviewed the banking habits of 16,742 individuals who registered a power of attorney as a result of financial incapacity.

Those records were compared with a control group of 50,226 individuals with no indications of lost mental acuity.

The research found some very clear patterns. Specifically, among those who registered a power of attorney, bank records showed the individuals were:

• More likely to report fraud
• More likely to report that a bank card had been lost or stolen
• More likely to ask for their PIN to be reset
• Less likely to log into their bank accounts, with one fewer login occurring each month
• 9.6 percentage points less likely to spend money on travel in the five years before registering a power of attorney
• 7.9 percentage points less likely to spend on hobbies, such as gardening

Those who experienced these changes were also more likely to spend money on items that were associated with increased time at home. For example, both electricity and gas bills increased in the five years leading up to the power of attorney registration.

The researchers also found that differences in spending habits increased gradually as the account holder moved closer to the date the power of attorney was registered.

Cognitive decline and your loved ones

Researchers came to a few key conclusions based on this data, including that:

• Declining financial capacity might result in a disengagement from outside activities and a retreat to the comforts of home
• Those beginning to experience lack of financial capacity might be more susceptible to scams, both because they're at home more and an easier target for phishing attempts, and because they might not be as well positioned to detect signs of fraud
• An increase in household bills could be an indicator both of more time spent at home and increased forgetfulness, such as failure to shut off household appliances

Monitoring for these behavioral changes could help researchers — and individuals — better detect some of the earliest signs of cognitive change. It could also encourage those experiencing signs of decline to seek medical help or engage in behaviors that help stave it off, such as:

• Increasing physical activity
• Adopting a healthy, balanced diet rich in Omega-3s
• Getting out to meet friends and family more frequently
• Making quality sleep a priority
• Getting enough cognitive stimulation, including doing puzzles or other activities that stimulate the brain

Family members who notice older loved ones taking far less interest in hobbies or travel should help them assess their financial fitness and begin guarding their finances before fraud occurs. As the old saying goes, prevention is better than cure.

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Savers are also feeling the squeeze with lower returns on the horizon. The Federal Reserve cut rates at its October meeting and will likely do so again when it meets in December.

With these things in mind, does a long-term CD make sense amid rising inflation and a rate cut?

Inflation projections for 2025

Inflation will overachieve its projections for 2025. Fed chair Jerome Powell said, “Everyone that I know is forecasting a meaningful increase in inflation in the coming months from tariffs because someone has to pay for them."

How much do they expect core inflation to rise in 2025? At the June Fed meeting, the Federal Open Market Committee (FOMC) reported that it expects inflation to increase to 3.1% in 2025, up from the March projections of 2.8%.

If you're wondering what the Fed will do at its next meeting, December 9-10, it's likely to issue its third rate cut of the year.

Why? The jobs reports have been less than stellar. And ADP's recent numbers show 32,000 jobs were lost in November, adding to the concern.

One way to stimulate job growth is through rate cuts. Doing so lowers borrowing costs for companies.

At the same time, it also lowers the returns you'll earn on your savings rates. This means now is the time to lock in higher returns while they are available.

Savings strategies to keep ahead of inflation

There are several ways to maximize your savings when inflation rises. The first is to lock in a long-term CD. CDs are market-resistant in that they come with fixed interest rates.

It means if you choose a five-year CD and the Fed decides to cut interest rates next week, the rate you have won't change until after your CD matures.

And some five-year CD rates are over 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, as many economists project, now's the time to lock one in 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 2025. 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 over 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 fast. 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 what strategy you use, CDs can shelter your money from the rising costs of everyday items.

With the Fed likely to cut rates next week, now is the best time to take advantage of the higher rates while they're here.

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Many Americans are re-evaluating where they keep their cash, shifting away from traditional checking and savings accounts in search of better returns.

Consumers are increasingly moving money into higher-yield options such as money market funds, brokerage accounts and online savings platforms that offer more competitive rates.

While cash reserves remain strong overall, savers are becoming more strategic — transferring excess funds into accounts that can keep pace with inflation, even if it means taking on more risk.

With interest rates still elevated and the Federal Reserve's next policy meeting approaching, this shift might reflect a broader rethinking of savings strategies and long-term financial security.

Let's explore why more savers are making the switch and what they’re choosing instead.

Why more savers are shifting from passive to active strategies

According to the JPMorgan Chase Institute’s latest Household Finance Pulse, which draws on data from 4.7 million Chase households, cash held in higher-yield financial vehicles has been steadily increasing — even among lower-income earners.

The analysis shows that households earning less than $35,000 per year saw total cash balances grow at an average annual rate of 5% to 6%.

These savers are increasingly shifting their money into more rewarding accounts, signaling a broader awareness of how to protect and grow savings in today’s high-interest-rate environment.

The findings suggest that while Americans are still holding onto cash, they’re also being more strategic, moving it to places where it can work harder.

How interest rates and inflation are pushing savers to act

Higher interest rates

The Federal Reserve’s rate hikes have made it more attractive to move money out of traditional savings and checking accounts. While many banks still offer low yields of 0.01% to 0.10% on standard savings, money market accounts and CDs are delivering returns north of 4% in some cases.

Beating inflation

Persistent inflation has led many consumers to question whether their money is truly “safe” if it’s losing value over time. Moving cash into investment income accounts is a way to preserve and potentially grow your purchasing power in the future.

More financial savvy

After years of financial uncertainty, Americans are becoming more intentional with how they manage money. Budgeting apps, online financial tools and social media education have contributed to a more informed and empowered saver.

Explore and compare some of today's best savings options with the tool below, powered by Bankrate:

Where savers are putting their cash for better returns

The most popular alternatives to traditional bank deposits include some of these options:

• Money market funds: Offering both liquidity and competitive yields, these funds are increasingly popular for storing emergency savings and short-term cash.
• Brokerage accounts: With access to ETFs, dividend stocks and bonds, brokerage accounts offer a path to longer-term investment income, though they come with market risk.
• Certificates of deposit (CDs): CDs are safe and predictable, but they lack flexibility if you need funds early, since there’s often an early withdrawal penalty if you need to access funds before the CD’s maturity date.
• High-yield savings accounts (HYSAs): Online banks are currently offering rates upward of 4%, which is significantly higher than what most brick-and-mortar institutions provide.

Pros and cons of moving money to higher-yield accounts

Shifting your savings into investment or high-yield accounts can offer clear benefits — but it’s not without tradeoffs. Here are some pros and cons to consider.

Pros:

• Significantly higher yields: Moving cash out of a traditional checking account and into a high-yield alternative can significantly improve your earning potential.
• Opportunity to stay ahead of inflation: With inflation eating away at purchasing power and interest rates remaining relatively high, people want to do more than let their money sit.
• Incentive to build longer-term financial plans: Whether you want to grow your retirement savings or ensure your financial stability a few years down the road, moving money to high-yield savings or investments could help with your long-term plans.

Cons:

• Market volatility for brokerage accounts: The market fluctuates, and not every investment is a guaranteed win.
• Lack of FDIC insurance in some investment vehicles: Investment-based accounts such as brokerage accounts or even money market mutual funds are not FDIC insured, which means you could lose money during a market downturn.
• Limited liquidity with CDs or certain investment funds: Even with more stable options such as CDs, you’ll face penalties if you withdraw your funds early.

What this says about the economy

The data suggest that this movement reflects growing consumer confidence or at least a willingness to engage more proactively with financial tools.

While some Americans are still cautious, the shift points to a desire to not just save money, but to make it work harder.

That said, total cash reserves haven’t disappeared; they’re simply being reallocated. This indicates that consumers still value liquidity, especially during uncertainty about interest rate policy, inflation and global market trends.

Should you move your cash for better returns?

That depends on your financial goals, risk tolerance and how much effort you're willing to put into optimizing your savings. If your current savings account is earning less than 1%, it's worth shopping around.

Many online banks and credit unions offer far more competitive rates with no monthly fees or minimums. If you're sitting on extra cash beyond your emergency fund, consider putting some into a short-term CD or a high-yield money market fund to capitalize on current rates.

It’s also important to consider your timeline. If you’re saving for a big purchase in the next year or two, liquidity matters. In that case, a HYSA or money market account might be best.

If you’re saving for a long-term goal such as retirement, moving excess funds into a diversified brokerage account could make sense if you're prepared for some market fluctuation.

Lastly, think about how comfortable you are with risk. Not every option offers guaranteed returns.

Before moving money around, make sure your emergency fund is intact, and your financial basics are covered. From there, you can start optimizing for yield.

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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 2025 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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“Fraud happens to everyone, even the smartest people,” says Phillip Reed, an asset protection attorney in Kalamazoo, Mich. “The tactics have gotten so sophisticated.” The Federal Trade Commission says 2.6 million consumers were victims of fraud in 2024, with losses of over $12.5 billion, a 25% increase from the previous year.

New developments, such as artificial intelligence and cryptocurrencies, have made cybercrime easier and more profitable than ever. With a little preparation and knowledge, you can protect your money and identity.

1. Digital crime is costing people more

While consumers lost a record amount of money to fraud in 2024, the number of complaints remained roughly the same as in 2023. In other words, the average incident got more expensive.

“Today’s fraudsters are patient. They aren’t in a rush to get $100 from you. They’re waiting to get $100,000,” says Kimberly Sutherland, global head of fraud and identity at LexisNexis Risk Solutions.

Investment scams were the largest category of losses at $5.7 billion, while Imposter scams were the second worst category, at $2.95 billion. Someone could impersonate one of your friends or family members and request financial assistance. With AI, they can spoof voices over the phone. Online dating scams gain a victim’s trust online through what appears to be a dream relationship before asking for money.

Theft from online shopping occurs more frequently but is less expensive in terms of the per-incident loss, according to Sutherland.

2. Retirees have a target on their backs

People over 60 were the most likely age group to report internet crime to the FBI in 2023, and lost the most money. Thieves see this generation as an easier target.

“They didn’t grow up with this technology as kids,” says Reed. “It’s not that they aren’t paying attention, but it’s something they had to learn and are now facing new threats.” At the same time, retirees’ lifelong savings create a tempting opportunity for scammers.

If you have any doubts, before agreeing to buying or providing any important information, share your emails, texts and popup images with someone else — a relative or a friend who can help you determine if it's a scam.

3. Strong passwords are worth the effort

Strong passwords are a simple and effective security measure. “It’s like locking your front door at night,” says Reed.

Avoid short codes with easily guessable words, such as names, addresses and common phrases. Strong passwords are at least 12 characters long, use a mix of upper- and lower-case letters, and include numbers and symbols.

You should have different passwords for every account. And avoid writing passwords down in an easy-to-spot location, as the wrong person could peek while visiting.

If keeping track sounds like a headache, you could use software like Bitwarden and LastPass to generate and store randomized passwords for all your accounts.

Enabling two-factor authentication further secures accounts. You’ll need to verify any login through your smartphone with a call or text.

4. Be proactive with safety measures

Your phone, computer, internet browser, and other software frequently recommend updates. Stay on top of them, as these include the latest cybersecurity systems.

Check your bank accounts and credit card statements weekly for unusual activity. “Scams often start with small transactions first, so you don’t notice. Watch out for a 34-cent charge at somewhere you’ve never shopped,” says Amber Schiffert, a financial planner with TARA Wealth in San Diego. You also could set up account alerts to receive a text, email or in-app message for every transaction.

5. Watch out for imposters

Cyberthieves constantly try to impersonate legitimate services: a text message claiming that you owe money for unpaid tolls, a phone call pretending to be from your internet provider, a computer screen popup saying it needs to fix a virus, an email claiming to be from the IRS saying you owe money, the list goes on. Seventy-eight percent of people reported receiving mobile scams at least weekly, according to a 2025 survey from Malwarebytes, which sells anti-virus software.

Slow down and verify everything. Cybercriminals often insist that you must act fast — or the “deal” will pass you by or your credit score will suffer. If you receive a call, hang up and contact the organization directly. Avoid clicking on links in emails, and refrain from replying with private information. You may want to establish a family code word that you can use on the phone to verify identities in case of AI voice fraud.

6. Be wary of deals too good to be true

Cyberthieves create spoof websites that resemble the brand and appear to link to legitimate companies that aren’t. They try to collect your credit card number, cash and personal information. Before placing an order, double-check that you are on the correct retailer’s page.

The same applies to posts on social media and other online marketplaces for selling goods and services. “If you see someone selling Taylor Swift tickets on Facebook for $400 when the market value is $4,000, don’t fall for it,” says Reed, the attorney from Michigan.

7 Guard your data like cash

Your personal data can be used for identity theft. If someone asks for information to verify your account, push back and ask if it’s really needed, especially for something personal like your Social Security number.

Consider what you reveal on social media platforms. Things like your date of birth, your childhood hometown and pet names could be used to answer security questions to access your digital accounts. Thieves could also use that information to impersonate you. Considering making your social media accounts private, so only people you know see what you post.

8. How you pay online matters

Credit cards have fraud protection, backed up federal law. If you report fraudulent charges within 60 days of receiving your account statement, your liability is limited to $50.

Other digital payment methods, such as electronic checks and payment apps like Venmo, have much less fraud protection. You can try filing a formal dispute with your bank or payment app, but there is no guarantee of a refund. “Think of it like giving someone cash with these payment options. You better be sure,” says Sutherland from LexisNexis.

And if you send cryptocurrency, that’s likely irreversible given the hidden nature of these transactions. It’s no wonder that people reported losing more money to bank transfers and cryptocurrency transactions than all other payment methods combined in 2024.

9. React quickly to possible fraud

If you suspect a problem, contact the bank, credit card company or payment app immediately. “That first 72-hour window is so important. It gives them time to lock down your account,” says Reed. The sooner you act, the higher your chance of them stopping the fraudulent transaction before it goes through.

You should also change the passwords on any exposed accounts. If you provided personal information, especially your Social Security number, consider placing a credit report freeze with the three major rating agencies. “As long as you’re not trying to buy a home soon or apply for other new lines of credit, we recommend using a freeze. It’s better safe than sorry,” says Schiffert, the financial planner from San Diego.

10. Authorities want to know what happened

Report incidents of cybercrime to federal agencies through the FBI’s Internet Crime Complaint Center and the FTC.

These agencies could help you retrieve lost money and assets while taking steps to bring justice against the criminals. “People feel too embarrassed to report, but they shouldn’t. It’s how authorities and businesses learn what’s needed to protect others,” says Sutherland.

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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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.

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The worries are for good reason. Even one of those issues can erode savings, forcing retirees to stretch their money more than can easily last during what could be a more than twenty-year period.

Fears of outliving savings are getting worse this year amid uncertainty brought on by tariffs and changes to Social Security.

According to the 2025 Protected Retirement Income and Planning (PRIP) Study, a nationwide survey of both consumers and financial advisors conducted by IPSOS, 54% of Baby Boomers and Gen-Xers are fearful of outliving their savings in retirement, up from 48% in last year’s survey.

As a result, some people are delaying retirement, collecting Social Security benefits earlier than planned, or seeking guaranteed income to give them peace of mind in retirement.

Others are realizing that they will have to save more to ensure they can live comfortably in retirement.

How much more? Seniorly, an online marketplace for senior living communities, pegs the average gap at about $115,000. That covers the difference between what older adults’ projected spending in retirement will be and what they’re likely to bring in from Social Security, savings and investments.

That gap, which Seniorly says is present in 41 states and Washington, D.C., is worse depending on where you live.

Seniorly analyzed the latest available data on life expectancy at age 65, Social Security income, household net worth and cost-of-living metrics to determine in which states retirees will see the biggest shortfalls.

The five places where you're most likely to outlive your savings

If you live in these four states, and Washington, D.C., expect to need to save a lot more, according to Seniorly’s analysis. High living expenses and health care costs are largely to blame for the shortfall between expected savings and what you'll need to live.

#1 New York

Shortfall: $448,000

#2 Hawaii

Shortfall: $417,000

#3 Washington, D.C.

Shortfall: $407,000

#4 Alaska

Shortfall: $342,000

#5 California

Shortfall: $337,000

What you can do if you face a shortfall

If you are facing a retirement savings shortfall, there are ways to shore up money so that you can have the retirement you dreamed about.

Pushing out your retirement date can be an effective strategy. Even delaying retirement for six months or a year can have a big impact on the amount of money you can save.

Saving more in a tax-advantaged retirement account, such as a 401(k) or IRA, while you are still working (and taking advantage of catch-up contributions if you are over the age of 50) can also boost your retirement nest egg.

Downsizing once you are in retirement, cutting your budget, or considering working part-time are also effective ways to increase your cash flow in retirement.

Regardless of what you do, it's important to go in with your eyes wide open, which means knowing your numbers.

Understand how much your lifestyle costs, how much income you'll bring in each month and how much you have saved. The more you plan, the better off you'll be when you do retire.

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The Federal Open Market Committee (FOMC) began its rate-cutting cycle a year ago with a surprise reduction of 50 basis points (50 bps), or half a percentage point, but it's been on hold since December.

A solid labor market and the impact on prices from tariffs have made the FOMC leery of lowering borrowing costs. But a slowdown in hiring and a large downward revision to previous employment data have both economists and the market expecting more dovish monetary policy going forward.

Importantly, the next Fed meeting will also include a Summary of Economic Projections (SEP), also known as the dot plot, which the FOMC releases four times a year.

"This quarterly update offers the Fed’s latest forecasts for GDP growth, unemployment, inflation, and the federal funds rate, providing a window into how policymakers interpret recent economic developments," writes Giampiero Fuentes, economist at Raymond James. "With most tariffs now fully implemented and imports actively taxed, the SEP will likely reflect updated economic projections."

To recap: The FOMC has held the federal funds target rate steady at 4.25% to 4.50% since its December meeting. It left rates unchanged in July, citing sticky inflation, tariff effects and, as always, the need for more data.

As of this writing, market participants expect the Fed to cut short-term rates by 25 basis points (a quarter of a percentage point) three times before year-end, with the first reduction coming later this week.

Indeed, as of September 15, interest rate traders assigned a 96% probability to a quarter-point cut at the next Fed meeting, according to CME Group's FedWatch. That's up from 85% a month ago.

Odds of additional quarter-point reductions at the October and December meetings stood at 74% and 69%, respectively.

With the Fed set to ease at an increasingly complex time, we turned to economists, strategists and other experts for their thoughts on monetary policy going forward. Please see a selection of their commentary, sometimes edited for brevity or clarity, below.

Fed rate cuts: what the experts say

"We expect a 25 bp rate cut at the September FOMC meeting to be the first of three this year. The increase in the unemployment rate over the last two months and the decline in job growth to below the breakeven rate make supporting the labor market the Fed's top priority. We expect 25 bp cuts in September, October and December and two more next year to 3.0% to 3.25%. We do not expect the FOMC statement to nod toward an October cut, but Chair Powell might hint softly at consecutive cuts in his press conference." – David Mericle, Chief U.S. Economist at Goldman Sachs

"We look for the FOMC to cut policy rates by 25 bps. This will resume the rate reduction campaign commenced last September which has been on hold this year. In the Summary of Economic Projections and the 'dot plot,' we look for the median fed funds forecast to show a second quarter-point rate cut for this year (so two in total for 2025, which was the case in June's SEP) and probably three moves for next year (it was only one before). In the press conference, we suspect Powell will spend time explaining why the Fed sided with the output/employment team in this policy tug-of-war." – Michael Gregory, Deputy Chief Economist at BMO Capital Markets

"The Fed has telegraphed a 25 bp cut at its September meeting. Markets will look to the SEP and press conference to assess the pace and extent of cuts going forward. The macro forecasts in the SEP should look very similar to June. We think the 2025 and 2026 median dots will show 50 bps of cuts each. Risks are for 75 bps in 2025. Powell's characterization of the labor slowdown (cyclical or structural?) and inflation (one-off or sticky?) should provide clues on his expected policy path." – Aditya Bhave, U.S. Economist at BofA Global Research

"The focus in this meeting is going to be less on the decision and more the path forward. The SEP and dot plot will be the market's anchor. Given how much dovishness is already priced, any median path that signals fewer cuts or a slower easing cycle in 2026 would read as hawkish. A split vote or dissent (for 50 bps or even a hold) would underscore internal debate and lift uncertainty around the rate trajectory. And with positioning primed for a steady easing cycle, even a neutral press conference from Chair Powell could disappoint markets and nudge equities toward a dovish-to-neutral repricing." – Daniela Sabin Hathorn, Senior Market Analyst at Capital.com

"Comerica forecasts a quarter-percentage point cut at Wednesday's Fed decision. The Fed can be expected to cut rates further in coming months; the question is how much, not if. If Powell reiterates the 'proceed carefully' language he used at Jackson Hole in the post-meeting press conference, it will signal that he favors a pause in rate cuts at the October decision (barring further deterioration in the economic data). It will be worth watching for a gap between the FOMC statement's guidance, which represents the consensus view of all FOMC members, and Chair Powell's own statements in the press conference, which reflect his personal view." – Bill Adams, Chief Economist at Comerica Bank

"The broad-based rise in consumer prices complicates the Fed's policy outlook. Persistent inflation risks may limit the Fed's ability to pursue aggressive rate cuts. Despite this, we continue to expect a 25 basis point rate cut in September, with at least one additional cut likely before year-end. A larger 50 basis point cut appears increasingly unlikely unless Fed officials perceive a significant recession risk." – Eugenio Alemán, Chief Economist at Raymond James

"With the weakening labor market and inflation seemingly under control, we expect a rate cut starting this week and totaling 100 basis points over the next four meetings through January 2026. The Fed now is looking at a significantly softening labor market as a key concern and priority. The stock market's recent gains are being driven by strong earnings momentum and declining rates as the market starts to price-in the Federal Reserve's expected rate cuts. Just because stocks are at record highs, does not mean a pullback is imminent." – Brian Buetel, Managing Director at UBS Wealth Management

"A 25 bp easing this week is highly likely, but the vote probably will be split three ways. Committee members are still divided on whether rising inflation or unemployment is the bigger risk. That discord will rule out clear guidance on future easing, though markets will still price-in a big shift." – Samuel Tombs, Chief U.S. Economist at Pantheon Macroeconomics

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Arguably, the best option to achieve both is a no-penalty CD. As its name implies, you can store your money away, as no-penalty CD rates earn well above 4%, with access to your cash when you need it.

That way, if the Fed does cut rates sometime this year, you can lock them in when they're still high and have the flexibility to find better investment opportunities if inflation rises.

So, what's the catch, and is this the best savings strategy for you to employ? Let's dive in.

How a no-penalty CD can help you

Let's start with the good:

• You'll earn rates as high as 4.34%
• Terms are short, giving you time to pivot investments if the Fed cuts rates
• You'll have access to withdraw some of your cash fee-free
• They're easy to set up

The pros indicate this is a great savings option if you want to tuck away your money for a short time, earn a rate outpacing inflation and have quick access to your cash. Whether you have an upcoming expense you want to earmark some money for or want a risk-free way to diversify some of your savings, a no-penalty CD offers it.

If you're interested in trying one, the tool below powered by Bankrate, can help you compare options from multiple banks quickly:

What to consider with this CD

As its name implies, no-penalty CDs come with the option to withdraw some of your cash should you need it during the term. However, it isn't as flexible as a high-yield savings account when it comes to access.

Usually, you'll need to keep all of your money in the account for at least seven days, up to 30 days with some banks, after funding it. For most savers, this isn't a deal-breaker since the intention is to take advantage of the higher rates of return. And the longer you keep it in, the more you'll earn.

Moreover, some banks and credit unions restrict how often you can withdraw money. Some will only allow you to do it once per month, while others allow you to take it all after the initial holding period.

Another thing to keep in mind is that some banks automatically renew CDs once they reach their maturity date. With this in mind, set a reminder on your calendar or phone a week before it matures, so it gives you time to investigate other options.

If you decide to switch to a high-yield savings account down the road, this tool from Bankrate can help you compare and find a suitable option:

Will the Fed cut rates?

While the future remains murky, some are projecting that the chances of upcoming rate cuts are increasing. Chief among them is Oxford Economics, which states there's an increasing chance of the Fed cutting rates by up to 50 basis points in December.

However, that isn't because the economy will be in a strong place.

"We do see a growing risk that the first move is larger, i.e., 50 basis points, because we think the Fed at that point may have some catching up to do with the labor market," Nancy Vanden Houten, lead U.S. economist at Oxford Economics, told Fortune. Her statement indicates that the tail end of this year could see the Fed coming to rescue a dwindling labor market.

If the Fed cuts, it impacts savers by way of lower rates. The good news is that if you have a no-penalty CD locked in, it won't impact your earning potential.

And you gain access to your cash quicker. That way, if inflation rises, you can pivot and put your money in an investment that could potentially keep you further ahead of rising costs.

Related content

• This Savings Account Earns You More Than $4,000. Here's How
• Kiplinger Interest Rates Outlook: Crosscurrents Keeping Rates in Narrow Band
• Where to Store Your Cash for the Rest of 2025
• 10 Cities Hardest Hit by Inflation

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
• States That Offer a Child Tax Credit