Rates Are Climbing: 5 Moves Savvy Savers Must Make Now

The consumer price index jumped 3.8% over the past year, the worst reading since May 2023. Producer prices surged 1.4% in a single month. That's brutal for borrowers. For savers, it's a window of opportunity.

1. Move your cash to a high-yield online account.

The national average savings rate is 0.38%. Online banks are offering around 4% APY. On $50,000, that's an $1,810 annual difference.

2. Lock in rates with a CD.

Five-year certificates of deposit are yielding 4.15% to 4.18%. If the Fed cuts rates next year, your money keeps earning 4%+ until maturity.

3. Buy Treasury bonds directly.

The 10-year Treasury hit 4.49% in mid-May. The 30-year bond crossed 5%. Interest is exempt from state and local taxes. A ladder of bonds protects against rate swings.

4. I bonds offer a 4.26% composite rate with an inflation hedge.

The rate adjusts every six months based on the CPI. You're capped at $10,000 per person per year, but it's one of the safest inflation-proof investments.

5. Expect a bigger Social Security COLA for 2027.

The Senior Citizens League estimates a 3.9% increase. That would add roughly $80 to the average monthly check. The final number is announced in October.