Welcome to our Money Monday series for the year 2026!
I would like to thank all of you for your support and criticisms over the years which has encouraged me to continue providing financial content as we steward our finances together. Thank you!
Last week we learned that there will be a new Federal Reserve Chairman whose term should commence in another three months. Why does this matter? It matters because if the new chairman decides to lower the interest rate (federal funds rate that banks use to borrow and lend to each other), it would mean that the current interest rate you are earning from your bank accounts would decrease significantly. Before all this takes place, you should be asking yourself the question, where should I put my cash ?
The Big Three
Before you decide where you place your cash, a personal financial self assessment of the big three is required.
- How much risk are you willing to accept,?
- How much of a factor is earning a high rate of income on your cash?
- How soon will you need the money or your liquidity?
Once you are comfortable with where you are on these factors, it’s now time to figure out where to put your cash.
Cash Options
Money Market Deposit Accounts: These accounts offer essentially instant access to your cash and pay better rates than your savings account. Why do you still have a regular or traditional bank savings account? Money market deposit accounts are federally insured and are paying at least three percent (3%) or more at traditional banks. On-line banks offer even higher rates of interest. These accounts may even come with debit cards and check writing privileges which is better than a traditional savings account.
Now, just because you are obtaining a high yield on your cash, does not mean you should switch banks or credit unions where you place your cash. Some of these money market deposit accounts may require maintaining high minimum balances. Here is an example of “ make it, make sense.” You changed from an account paying 2% to 4% which now requires a minimum of $2,500 cash in your account; this may translate into an additional $50 or so in a year. The point is that switching accounts because of higher interest rates should not be dispositive. Make it make sense.
Exchange Traded Funds or Money Market Mutual Fund: These accounts can also be a good place to store emergency funds. However, they come with higher risk such as not being insured by the Federal Deposit Insurance Corporation. These funds invest in municipal funds and corporate debt or high quality treasury bills. With these funds the strategy is aimed at not losing money. If you want higher interest, be prepared to take greater risk.
Certificate of Deposit: This may be a great place to place your cash if you do not need it for another three months or more. As part of your research you should seek certificates of deposits which may be labeled “no penalty CD.” These type of certificates will not charge you a penalty or you will not lose interest should you decide to withdraw your certificate early. Rates may range from 3% or more which is greater than your bank savings account rates and above the rate of inflation. Once the Federal Reserve lower the interest rate, you will not earn these rates on your cash accounts anymore as we transition to new leadership.
That’s What’s Up!
Today’s What’s Up is about filing your taxes. This tax season, the IRS is no longer providing Direct File, which was a free filing program service for taxpayers with only W-2 income of up to $200,000. There may still be some free filing options available such as through the AARP tax aid program if you are over fifty years of age. Also, there is Free File which is an arrangement between the IRS and private tax preparation companies that allows taxpayers to file their tax return for free through a provider if they meet the eligibility requirements.
And that’s what’s up!
Ruthven R. Phillip, Esq., is a tax attorney, Stewardship and Philanthropy Ministry Assistant, and CEO of Give2Getrich, LLC. Give2Get Rich, LLC 2026 All Rights Reserved. Any distribution or reproduction of part or all of the contents in any form is prohibited.
