Inflation has a way of sneaking up on everyone. You don’t see it day to day — but over time, it quietly eats away at the value of your hard-earned money.
A gallon of milk, a bag of groceries, a tank of gas — they all cost more than they did a year ago.
If your savings are sitting in a standard account earning next to nothing, you’re effectively losing money in real terms. Fortunately, there’s a simple, low-risk way to fight back.
The Problem: Inflation Is Costing You Every Month
Let’s say you have $10,000 in a savings account earning 0.3% interest. At the current inflation rate of about 3%, your “real” value a year from now is closer to $9,700.
That means your purchasing power — what your money can actually buy — is shrinking even though the number on your statement stays the same.
This is one of the most common financial traps people fall into: leaving money idle during inflationary cycles.
The Smarter Move: Lock In a Fixed Return
One way to outsmart inflation is by locking in a guaranteed rate with a Certificate of Deposit, or CD.
A CD is a time-based deposit that pays a fixed interest rate for a specific period — usually 6 months, 1 year, 2 years, or more. When you open one, your rate is locked in for the entire term.
That means if the economy shifts or the Federal Reserve cuts rates later, your return stays the same. You’ll know exactly how much you’ll earn, with no market volatility and no guesswork.
| Option | Typical Rate | Risk | Liquidity |
|---|---|---|---|
| Regular Savings | ~0.5% | Low | High |
| Fixed-Term CD | 4.0–5.0% | Low | Medium |
| Stock Market | Varies | High | High |
The key advantage: you’re trading a little flexibility (your funds are locked for the term) for much higher returns and total peace of mind.
Why Timing Matters: Rates Are Still High (for Now)
We’re currently in one of the best interest-rate environments for savers in over a decade — but it won’t last forever.
When rates eventually start to fall, newly issued CDs will likely offer lower yields. By acting now, you can lock in today’s higher rates before they drop again.
Think of it like securing a great mortgage rate — only in reverse. You’re the one earning the interest this time.
Building a Strategy That Fits Your Goals
Not sure how long to commit your money? That’s where a CD ladder can help.
Here’s how it works:
- Divide your total deposit into smaller chunks.
- Place each portion into CDs with different maturity dates — 6 months, 12 months, 24 months, etc.
- As each CD matures, you can either cash out or reinvest at the latest rate.
This simple strategy keeps part of your money accessible while maximizing your returns. It’s perfect for anyone who wants to stay flexible but still get the benefit of higher yields.
Safety You Can Count On
Every CD opened through a federally insured financial institution like TBO Bank is covered by the FDIC (up to $250,000 per depositor, per bank, per ownership category).
That means your principal is protected, even in the event of a bank failure. You won’t find that kind of safety in the stock market, crypto, or many bond funds.
Combine that protection with predictable earnings, and you’ve got one of the most reliable wealth-preservation tools available.
How Much Could You Earn?
Here’s a quick example:
If you deposit $10,000 into a 12-month CD at 4.75%, you’ll earn nearly $475 in interest by the end of the term — guaranteed.
Compare that to leaving the same $10,000 in a checking account at 0.1%, which would earn just $10.
That’s the difference between your money sitting still and your money working for you.
The Takeaway: Don’t Let Inflation Win
Inflation isn’t slowing down — but your savings don’t have to fall behind.
By locking in a fixed return now, you can protect your cash from losing value and enjoy steady, predictable growth while you sleep.
Whether you’re saving for a future expense, building an emergency fund, or just tired of earning pennies in interest, fixed-term deposits give you the control and confidence you need.
✅ Next Step? Lock in a Top Fixed-Term CD Rate
Rates change fast, and the best opportunities don’t stay open for long. Take a moment to explore the latest CD offers and find a term that fits your goals.
Partner disclosure: This content is published in partnership with TBO Bank. Product terms, conditions, and rates are provided by TBO Bank (Member FDIC).
