Savers face an uncertain future. The Federal Reserve has already cut rates twice, which has lowered the yields on many savings accounts and CDs.
Furthermore, President Donald Trump is expected to appoint a new head of the Federal Reserve by the end of the year. Trump wants more aggressive rate cuts to pay down debt and save money; whoever takes the helm will likely advocate for further cuts in 2026 if they can persuade other voting members.
As a result, the unclear situation calls for clarity for savers. Here are three smart money moves to consider now to help you reach your goals in 2026 and beyond.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Ensure you're on the road to your retirement goals
Setting up a retirement plan is only half the game. You'll also want to check in periodically to see if it's continuing to help you reach your goals.
If you're working and have a 401(k) from your employer, review it annually. Ensure you have the maximum contribution you feel comfortable with, and the performance aligns with your goals and risk profile. If they don't, you can adjust contribution levels or reallocate your investments.
For investors without a 401(k), you'll want to explore long-term investing options that offer healthy returns at an acceptable risk. If you have several years before your expected retirement, you're more likely to get better returns through the stock market than traditional savings accounts. (Keep tax implications in mind, as your own investments are treated differently from 401(k) plans.)
This is where a target-date fund comes in. These funds are built for saving for retirement, and they do the work for you to target the growth you want.
Read more: Best Online Brokers and Trading Platforms for 2025
Finally, if you're saving for retirement, keep up with your IRA. For 2026, you can contribute up to $7,500, which helps you reach your retirement goals and is a tax-smart planning strategy. It can help to plan ahead to make that contribution, whether that means setting aside a certain amount each month or planning to use a year-end bonus for your contribution.
Build, maintain and protect your emergency savings
Building an emergency fund ensures you're prepared for surprise expenses or can weather a job loss. The best option for achieving this is with a high-yield savings account (HYSA).
If you're working, you can set up automatic transfers from your checking account to your high-yield savings account on payday, or set your paycheck to direct deposit a certain amount each round into a high-yield savings account.
I recommend setting aside at least 10% each check, but aim to do more if possible until you have an emergency fund that covers about six months of expenses.
Meanwhile, if you already have an emergency fund at a comfortable balance, it's a good idea to review your account. Ensure the amount you've accrued still meets your needs, and you're earning a healthy rate of return.
If not, it doesn't hurt to shop around, as many online banks can help you maximize your earnings.
Read more: Best High-Yield Savings Accounts
There are several things to consider with HYSAs. Chief among them is that these accounts have variable interest rates. If the Fed cuts rates again in the future, it could impact your earnings through lower APYs. But generally speaking, even with the cuts, HYSAs still provide returns higher than inflation.
Additionally, any income earned from a HYSA is taxable as ordinary income and based on your federal tax income bracket. At the end of the year, your bank sends you Form 1099-INT, which you can file with your tax return. Don't let the tax implications deter you, though, as you're only paying taxes on the interest gained.
Shield your savings for a specific goal
If you're saving for a large expense coming at an expected time — like a scheduled vacation or the birth of a child — set funds aside and find a savings vehicle that grows. In these cases, I recommend CDs, as you can find a term that matches your plans.
Say you're saving to help pay for your child's wedding in 2027. You can open a one-year CD now to earmark money for it. Make sure to set a reminder as the maturity date nears, as many banks auto-renew CDs.
CDs are also beneficial in that once you open one, the rate remains fixed. If the Fed cuts rates again, it won't impact your earnings. You can find the best CD rates that fit your savings goal with this Bankrate tool:
If you're concerned about tying up your money but like the fixed rates CDs offer, another approach could be to use a no-penalty CD. No-penalty CDs give you the best of both worlds in that you lock in your rate as you would with a regular CD, but you have access to your cash when you need it.
This option works best if you have short-term goals, such as saving for a vacation next summer, and require quicker access to your money.
Charting a course for a successful 2026
The best time to plan for next year is now. Doing so helps you set any financial priorities and goals you want to achieve. From here, you can use these strategies to help you reach your goals, even with the uncertainty 2026 might bring to savers and investors.
Related content
-
I'm retired with $2.2 million saved and work 2 retail shifts for fun. My young colleague just got her hours cut. Should I quit so she can have my shifts?We asked certified financial planners for advice.
-
Could an Annuity Be Your Retirement Safety Net?More people are considering annuities to achieve tax-deferred growth and guaranteed income, but deciding if they are right for you depends on these key factors.
-
Older Taxpayers: Don't Miss This Hefty (Temporary) Tax BreakIf you're age 65 or older, you can claim a "bonus" tax deduction of up to $6,000 through 2028 that can be stacked on top of other deductions.
-
What Not to Do in an Airport LoungeBefore you settle into that cushy lounge chair, skip the rookie moves that annoy other travelers and can even get you kicked out.
-
CD vs. Money Market: Where to Put Your Year-End Bonus NowFalling interest rates have savers wondering where to park cash. Here's how much $10,000 earns in today's best CDs versus leading money market accounts.
-
New IRS Changes to FSA Contribution Limits for 2026: What to KnowHealth Care Flexible Spending Accounts have tax advantages worth looking into, especially in light of new IRS changes.
-
Meet the World's Unluckiest — Not to Mention Entitled — Porch PirateThis teen swiped a booby-trapped package that showered him with glitter, and then he hurt his wrist while fleeing. This is why no lawyer will represent him.
-
Smart Business: How Community Engagement Can Help Fuel GrowthAs a financial professional, you can strengthen your brand while making a difference in your community. See how these pros turned community spirit into growth.
-
How Much Would a $50,000 HELOC Cost Per Month?Thinking about tapping your home’s equity? Here’s what a $50,000 HELOC might cost you each month based on current rates.
-
My First $1 Million: Self-Employed Trader, 50, San FranciscoEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Waiting for Retirement to Give to Charity? Here Are 3 Reasons to Do It Now, From a Financial PlannerYou could wait until retirement, but making charitable giving part of your financial plan now could be far more beneficial for you and the causes you support.
