“Individuals need to thoroughly examine the specifics of each plan and take into consideration their health, financial situation and willingness to take on financial risk,” advises Colleen Duewel, an aging life care professional and founder of LionHeart Eldercare & Consulting of Falls Church, Virginia.

[READ ]

At a Glance: Medicare vs. Medicare Advantage

What Is Medicare?

Medicare is the government health insurance program available for people age 65 and older and those under age 65 with and conditions, such as Lou Gehrig’s disease (also called , or ALS) or (permanent kidney failure requiring dialysis or transplant).

Medicare comes in two :

— is hospital insurance that helps cover inpatient care in hospitals, skilled nursing facilities, and some home health services.

— is medical insurance that helps cover visits to the doctor, outpatient care, services and certain medical supplies.

Medicare acts as the foundation, but beneficiaries frequently layer on private plans to shield themselves from uncapped out-of-pocket costs, such as copays and

Part D

Medicare does not generally cover prescription drugs, making an important source of coverage for many beneficiaries. plans are sold by private insurers and purchased separately from Medicare. According to , beneficiaries can choose from approximately eight to 12 Part D plans in 2026, depending on their state.

In 2026, Part D beneficiaries pay no more than $2,100 out-of-pocket for covered prescription drugs during the calendar year. This cap applies only to spending on covered medications, including deductibles, copays and coinsurance, and does not include monthly Part D premiums. Once a beneficiary reaches the $2,100 limit, they pay nothing for covered drugs for the remainder of the year.

Medigap

Medicare beneficiaries can purchase a , also known as Medigap, to help cover any costs Medicare doesn’t cover. Because Medicare does not include an annual out-of-pocket maximum, enrolling in this coverage can be a prudent financial move.

Be aware that in most states, guaranteed issue rights for Medigap only apply during your Medicare initial — meaning insurers cannot or charge higher premiums based on preexisting conditions. If you wait, they can.

If you already have a that meets your needs, think carefully before to Medicare Advantage. If you later want to return to Medicare with Medigap, insurers can use medical underwriting, which may result in higher premiums or a denial of coverage altogether.

[READ: ]

What Is Medicare Advantage?

, also called Part C, provide an alternative way to receive health coverage. Offered by private insurance companies approved by Medicare, these plans must provide comparable coverage to Medicare and often include prescription drug coverage.

Medicare Advantage plans are similar to individual policies you may have received through your employer or signed up for on your own through the individual insurance market. They differ in terms of monthly premiums, provider networks, copays, coinsurance and out-of-pocket limits.

Are Medicare Advantage plans free?

Some Medicare Advantage plans promote a $0 monthly premium, which may sound appealing, but this only means you won’t pay extra beyond the standard Part B premium ($202.90 in 2026) that all Medicare beneficiaries are required to pay. A plan with a $0 premium may also come with higher copays or coinsurance, smaller provider networks, more restrictions on the use of services, higher out-of-pocket limits or less generous coverage of prescription drugs.

What are the perks with Medicare Advantage plans?

The “extra”

that come with many Medicare Advantage plans are a major draw; these include:

—

— Gym memberships, such as

— and exams

— services

— Over-the-counter drugs allowance

— Prescription drug coverage

— services

— care

— Wellness visits

However, “Benefits vary from plan to plan and even across different states, so be sure to check the fine details of the Medicare Advantage plans you may sign up with,” advises Lisa Humes, an independent insurance agent in Manassas, Virginia.

[Read: ]

Medicare Advantage HMO vs. PPO Plans: What’s the Difference?

Medicare Advantage plans are most commonly structured as plans. Understanding the difference between these two designs can help you choose the option that best fits your lifestyle and budget.

Which Is Better: Medicare or Medicare Advantage?

There is no one-size-fits-all answer when choosing between Medicare and Medicare Advantage. The best option depends on your healthcare needs, budget, travel habits, preferred doctors and whether supplemental benefits are important to you.

Choose Medicare if:

— You want the freedom to see any doctor, specialist or hospital in the country that accepts Medicare.

— You travel frequently or live in more than one state during the year and need coverage beyond a specific geographic region.

— You want coverage that is consistent nationwide and stays largely the same from year to year, making your benefits easier to understand.

— You prefer not to deal with referrals before seeing specialists.

— You want fewer prior authorization requirements for tests, procedures and treatments.

— You value more coverage for healthcare costs through a combination of Medicare and Medigap.

— You want the flexibility to choose a stand-alone Part D prescription drug plan that best fits your medication needs.

Choose Medicare Advantage if:

— You want an all-in-one plan that typically combines medical and prescription drug coverage.

— You are looking for lower monthly premiums than the combined cost of Medicare, Medigap and Part D coverage.

— You want extra benefits but don’t mind that they may have annual limits, cost-sharing requirements or network restrictions.

— You prefer the convenience of having one plan administer your healthcare benefits.

— You want an annual out-of-pocket maximum that limits spending on covered medical services.

— You are comfortable using provider networks and potentially obtaining referrals or prior authorizations for certain services.

Enrolling or Switching Medicare Plans

There are several enrollment periods throughout the year, each designed for specific situations, whether you’re signing up for the first time, making changes to your coverage or adjusting after a major life event. Understanding when you can enroll or switch plans can help you avoid and ensure you get the coverage that fits your needs. Here’s a breakdown of the key Medicare enrollment periods and what each one allows you to do:

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Interest rates on home loans have risen since the beginning of the U.S. war in Iran. The Middle East conflict has put upward pressure on oil prices, which can make other items more expensive to manufacture and transport. Put simply, higher oil prices mean higher inflation — and higher inflation means higher interest rates.

In fact, mortgage rates spiked after April’s consumer price index report was released on May 12, showing inflation increased 3.8% annually — the highest rate increase since May 2023. Much of that inflationary pressure can be directly attributed to rising oil prices.

“The highest mortgage rates since last August have slowed borrower demand in recent weeks … Despite the slowdown, purchase demand continues to run ahead of last year’s pace, reflecting some resiliency in the purchase market despite the higher rate environment.”

— Bob Broeksmit, president and CEO of the Mortgage Bankers Association

Most experts expect over the next few years, stuck above 6% for the 30-year fixed term. Although there’s always the chance that something unexpected could happen in the U.S. economy that could send rates tumbling lower, it’s unlikely that rates will fall below 3% or even 4% in the foreseeable future.

[Read: ]

Current Mortgage Purchase Rates

Here are today’s interest rates for conforming purchase mortgages by loan term:

— : 6.588%

— : 6.521%

— : 5.719%

— : 5.656%

— 7-year ARM: 6.775%

— : 7.155%

— 3-year ARM: 8.25%

And here are the current government-backed and nonconforming mortgage rates by loan type:

— : 6.501%

— : 5.793%

— : 5.99%

Current Mortgage Refinance Rates

Here are today’s mortgage refinance rates:

— 6.679%

— 20-year fixed refi: 6.655%

— 5.705%

— 10-year fixed refi: 6.466%

Mortgage refinance rates tend to follow the same trends as mortgage purchase rates, although interest rates on a mortgage refinance are often a few basis points higher than on purchase mortgages.

[Read: ]

Mortgage Rate Trends in 2026 So Far

collects weekly mortgage rate data, which can help provide context for mortgage borrowers on how and why mortgage rates change over time. Since the mortgage giant began collecting data in 1971, the median mortgage rate is 7.24%.

The 30-year fixed rate of 2.65% in January 2021, driving up demand for purchase and refinance mortgages. Since then, mortgage rates rose to nearly 8% in October 2023 before coming down to around 6.5% currently. Still, that’s nothing compared with the record high of 18.63% recorded in 1981.

Mortgage Monthly Payment Calculator

Your mortgage interest rate is just one aspect of your monthly housing payment. You’ll need to carefully consider how your home’s purchase price will impact your budget so you don’t buy more house than you can comfortably afford.

The mortgage term — or the length of your loan — will also significantly influence your monthly payments. Most borrowers opt for a 30-year fixed mortgage, which can keep monthly payments affordable because they are spread over a long repayment term. But if you can afford the higher monthly payments of a 15-year mortgage, it can save you tens of thousands of dollars in interest payments over time.

You’ll also need to consider property taxes, home insurance, homeowners association fees and , if applicable. You can use the calculator below to run the numbers for your financial situation.

How to Shop for a Mortgage

The mortgage rates we display on this page are national averages from lenders as provided to U.S. ²ÝÝ®´«Ã½ by Zillow, not necessarily the exact rate you’ll receive. Mortgage rates fluctuate throughout the day, and some lenders may be able to offer more favorable pricing for your situation than others.

“As rates fluctuate, aspiring buyers should remember that by shopping around for the best mortgage rate and getting multiple quotes, they can potentially save thousands,” says Sam Khater, chief economist at Freddie Mac, in a statement.

Here are a few tips to help you shop for the lowest mortgage rate possible for your financial situation:

— Get your finances in order. Collect the documents you’ll need to apply for a mortgage using . You should also check your credit score and get a copy of your credit report to see where you stand.

— Apply through three to five lenders. Be sure to consider different loan types (such as ) as well as different types of lenders (like online lenders versus credit unions). Keep your rate shopping to a two-week window to minimize the negative impact to your credit score.

— Compare loan estimates. This document will outline the loan’s costs, including origination charges, lender credits, discount points, as well as the loan’s interest rate and or APR. The APR includes the interest rate as well as any fees, making it a holistic way to compare the cost of multiple loan offers.

Check out this from the Consumer Financial Protection Bureau to get a better idea of what to expect when comparing loan offers.

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What Is a Conventional Loan?

A conventional loan is a mortgage that’s not backed by the federal government — unlike , VA and USDA home loans. Conventional loans are not insured by a government agency. Instead, they’re funded by private lenders and insured, when necessary, by private mortgage insurance companies.

Conventional loans fall into two categories: conforming and nonconforming.

— A meets guidelines established by . Fannie and Freddie are government-backed housing finance giants that buy mortgages from lenders and sell them to investors.

— Nonconforming loans are mortgages that don’t meet conforming guidelines. Lenders are free to create their own underwriting rules as long as they don’t violate lending laws. They may choose to keep these loans on their own books or sell them to investors through various channels.

[See: ]

How a Conventional Loan Works

Conventional loans vary a lot in their underwriting requirements and their terms. So it’s helpful to prequalify with lenders first if you’re unsure of the type of loan you want or if you qualify. Your loan officer or processor takes your information and usually submits it through an automated underwriting service, or AUS. The AUS makes an underwriting decision and generates a list of requirements for you to meet (like supplying pay stubs and bank statements and lining up homeowners insurance). Once a human underwriter signs off, you get loan documents to sign and are

Beyond the Standard Mortgage: Conventional Loan Types for Unique Financial Situations

You’ll probably see many types of conventional loans when you shop for a mortgage. Here are some of the most common.

Conforming Loan

Conforming loans are what many people think of when they hear the term “conventional mortgage,” and many use the terms interchangeably. Conforming loans get their names because they must conform to guidelines set by Fannie Mae and Freddie Mac. This allows investors to be confident that any loan they buy has the same low risk of default.

Qualified Mortgage

Qualified mortgage is a designation that applies to loans that do not have risky features, high rates or fees, and the lender must verify the borrower’s income and assets to make sure the loan is affordable. Government-backed loans are qualified mortgages, and many conforming loans are QM — but not all.

Nonconforming Loan

Nonconforming loans include all loans that are not government-backed loans or conforming loans. Mortgages can be nonconforming for many reasons, and they all fall under this big umbrella.

Jumbo Loan

Loans that exceed the maximum amount for conforming loans are often called “jumbo” mortgages. Really large loans may be called “super jumbo” mortgages. Maximum loan amounts for conforming mortgages vary by location, so the line between jumbo and conforming depends on where you are. Jumbo loans can be harder to qualify for because there is more money involved, and that makes them riskier for lenders.

Nonprime Loan

Nonprime is the preferred term for what was formerly called subprime loans. The most typical reason for a loan being nonprime is that it accepts lower — often under 580. But there are other reasons for being nonprime. You may have a recent bankruptcy or foreclosure that would require you to wait for years before getting a government or conforming mortgage. Or you might need a nonprime loan because your income can’t easily be proven with tax returns, but it shows up on your bank statements. Note that down payments are higher for nonprime financing.

Alt-A Loan

These are loans that require alternative ways of verifying income. Borrowers must usually have excellent credit.

Portfolio Loan

This is a loan that a mortgage lender chooses to keep on its own books and not sell to investors. While portfolio loans tend to be nonconforming, they can also be conforming loans.

Non-QM Loan

These conventional loans don’t meet the requirements for qualified mortgages. They may have riskier features, like balloon payments, negative amortization or interest-only payments.

[See: ]

Conventional vs. Government Loans: FHA, VA, and USDA Differences

Your financial profile can help you determine which mortgage is the best fit for you.

Overall, consumers may prefer conventional loans over government-backed loans — which include Federal Housing Administration loans, Veterans Affairs loans and U.S. Department of Agriculture loans — because federal loans have additional restrictions and requirements, says Andrew Ragusa, licensed real estate broker and owner of REMI Realty in East Northport, New York.“A conventional loan removes those concerns,” he says.

Financial Guidelines Required to Qualify for a Conventional Home Loan

Conventional loan requirements depend on the type of loan you choose.

— Down payments for conforming loans can be as low as 3%. If you’re looking for a jumbo or super jumbo loan, expect the down payment requirement to be higher — at least 10% (although some lenders make 95% jumbo loans to highly qualified applicants).

— A credit score of at least 620. If you’re getting a jumbo loan, the requirement will be higher — usually at least 680.

— A debt-to-income ratio of 45%. This means that, in general, no more than 45% of your total monthly gross pay should go toward debt payments. If you have a large down payment, some lenders allow higher ratios.

— Proof of income. For conforming loans, you will likely need two years of documentation, including tax returns, W-2 forms or recent pay stubs, to show that you have ample, steady income to afford the loan payments. Nonconforming lenders may allow alternative income documentation.

begins once you apply for the lender to determine the risk of offering you a loan. You may be asked for additional documentation about your finances along the way.

In the meantime, the lender will appraise the property to determine its value. You may also schedule a home inspection to identify any major problems before closing.

Advantages and Disadvantages of Conventional Loans

Conventional loans come with many benefits to borrowers and some downsides. Here’s a closer look at some pros and cons of conventional loans:

Pros

— Competitive interest rates.

— Low down payments. You can get a conventional loan with as little as 3% down, Ragusa says.

— PMI premiums can eventually be canceled on conforming loans. Once you’ve paid down 78% of your home’s original value, your loan servicer must remove your PMI.

— Can be used for all types of properties. Conventional loans can be used for a primary residence, vacation home or rental property, unlike government-backed loans, which are limited to principal residences.

Cons

— Tougher credit score requirements than for government loan programs. Conventional loans often require a credit score of at least 620, which leaves out some homebuyers.

— More stringent DTI requirements. Conventional loans typically demand higher DTIs than government programs do. Expect to meet a standard of no more than 45% DTI.

— PMI premiums with a low down payment on conforming loans. You’ll still have to pay PMI if you put down less than 20%.

If you’re not sure whether a conventional loan is the right move, your real estate agent and loan officer can help, Ragusa says. They will be able to guide you to the most appropriate loan based on your financial situation and credit history.

“There’s a reason all the other loans exist,” Ragusa says. If your finances and the property meet the qualifications for a conventional loan, though, it can be a great choice.

When to Choose Conventional Over a Government Loan

A conventional loan can be a good choice, depending on your financial situation. Conventional loans are widely available and easy to shop for. Interest rates can be very competitive. They may not be the best solution if your situation is “out-of-the-box” or if you’re likely to be penalized for down payment, income or credit challenges. Here are some scenarios in which a government-backed loan might be a better fit:

— Your debt-to-income ratio is over 43%.

— You don’t have money for a down payment.

— You qualify for for service members and veterans.

— You want an assumable loan. Government-backed loans can be assumed by qualifying buyers.

— Your credit score is below 620.

On the other hand, conventional loans comprise a variety of programs. Here’s where they shine:

— Your situation is typical — 5% to 20% down, good to excellent credit, wage income, and a debt-to-income ratio of 43% or lower. Your application will likely be underwritten quickly.

— You want a very large loan that exceeds the limits of government-backed mortgages.

— You have credit problems and need a nonprime loan. Expect to make a large down payment.

— You want to buy .

— You want to purchase an unusual property that doesn’t meet government loan requirements.

— You have very high credit scores and a small down payment. , required for most conventional loans with down payments under 20%, will be much cheaper for you than premiums for government-backed loans.

Conventional financing, unlike government-backed loans, does not have geographic limitations or special requirements. A conventional loan can be more flexible than a government-insured loan, but harder to qualify for.

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BNPL Can Lead to Debt Stacking

With BNPL, you’re probably not replacing one debt for another; you may just be accumulating both. Data from the showed that in 2022, 63% of BNPL borrowers took out multiple simultaneous BNPL loans — and 33% took out loans from multiple BNPL lenders.

These BNPL borrowers were also more likely to hold higher balances on other credit accounts, including personal loans, retail loans, student loans, credit cards and subprime alternative financial services lenders. Which isn’t surprising when you consider that nearly two-thirds of BNPL loans went to borrowers with subprime (580 to 619) or deep subprime (below 580) credit scores.

Let’s say you finance a furniture purchase through a BNPL provider, but you also use your rewards credit card to purchase and . This means you’re officially debt stacking, which is accumulating multiple forms of debt simultaneously. When you have multiple small debts like this, it can be hard to track them accurately.

Plus, compared with consumers with a similar financial profile who did not use BNPL services, consumers who took out at least one BNPL loan in a given month were more likely to hold higher balances on other types of unsecured consumer credit. How much more?

[Read: ]

BNPL Can Slow Credit Card Debt Repayments

Most of us live on a fixed income. After covering mortgage or rent, gas, food, utilities and other essentials, there’s only so much left for savings and debt repayment. And every dollar you give to a BNPL plan can’t be used to reduce your credit card balance. If a BNPL payment prevents you from making substantial progress on a credit card balance, you could end up paying hundreds more in high interest.

Let’s say you have $500 available each month to put toward debt. And you have a balance of $6,000 on a credit card with an interest rate of 21%. But you also have a BNPL plan that requires $200 monthly payments. It would take you over two years to pay off that credit card if you made monthly payments of $300. And you’d pay close to $1,500 in interest.

But if you made monthly payments of $500 to that $6,000 credit card balance, it would take you 14 months to pay off that balance, and you’d pay a little under $800 in interest — a difference of about $650.

[Read: ]

Warning Signs BNPL May Be Harming Your Finances

BNPL isn’t automatically problematic. If used correctly, it can be helpful in a pinch. But there are certain warning signs that could indicate these services are doing more harm than good to your finances.

— You have multiple active payment plans. If you’re juggling multiple BNPL plans, it may be time to review how much you’re spending each month and determine where you can pull back.

— You’re making minimum payments on your credit cards. Making only the minimum payment is a recipe for disaster because you’ll get charged all that interest. It’s OK to make just the minimum payment once or twice, but if it’s the only amount you can consistently afford to pay, then your budget is stretched too thin and needs adjusting.

— You’re using BNPL for everyday expenses. Using BNPL for essentials is a warning siren, since these services are generally designed for planned purchases, not routine living expenses.

Consumers can benefit from BNPL services when the purchase is planned and necessary, a clear repayment strategy is achievable and it doesn’t mean a credit card will accrue undue interest. If you already have significant credit card debt, a BNPL plan could just make things worse.

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Today’s retirees are in an especially tricky spot. Interest rates are still relatively high, inflation has started to edge back up and stocks have been volatile. Add geopolitical instability into the mix in the form of the U.S.-Iran conflict and on-again, off-again ceasefires, and retirees may feel like their portfolio is in a real pickle.

[]

In addition, the old-fashioned won’t generate enough growth to sustain a retirement lasting 30 years or more, given current longevity rates. That makes playing it safe more complicated than it sounds.

“Retirees often confuse ‘low risk’ with avoiding losses when, in fact, it’s equally about matching the right tool to the right time horizon,” says Shanon Davis, CEO of American Alternative Assets in Los Angeles.

Rethinking Low Risk in Retirement

The solution is a more deliberate approach focused on diversification and long-term stability.

“Retirement investors need a clear-headed strategy that utilizes a diversity of stable wealth preservation tools so that their money can last longer and, ideally, continue to grow over time,” Davis says, noting that there’s no single investment type or asset class that can guarantee this. “So should be top of mind for retired folks and those planning for retirement,.”

Here are eight low-risk investments that shouldn’t be viewed as a portfolio, but instead as discrete assets that could add capital preservation and income generation into a :

— U.S. Treasurys.

— Treasury inflation-protected securities (TIPS).

— High-yield savings accounts.

— Money market funds.

— Investment-grade bonds.

— Certificates of deposit (CDs).

— Municipal bonds.

— Fixed annuities.

U.S. Treasurys

U.S. Treasurys have long been considered ultra-safe , but with deficits rising and borrowing needs increasing, do longer-term bonds still measure up?

“Despite rising fiscal deficits, we still believe Treasurys deserve a place across the maturity spectrum,” says Brian Therien, a chartered financial analyst and senior analyst of investment strategy at Edward Jones in St. Louis.

Therien says Washington has several tools to address growing debt, including spending cuts, passing costs to states or raising taxes.

“In addition, higher productivity, perhaps driven in part by technology and , could accelerate economic growth, potentially boosting tax revenues and helping narrow deficits over time,” he adds.

Treasury Inflation-Protected Securities (TIPS)

With still very much in the picture, and with oil prices at high levels, retirees may want to consider these fixed-income instruments. TIPS are U.S. government bonds whose principal adjusts with inflation, helping preserve purchasing power over time.

“TIPS may be overlooked in part because of their smaller market size. At about $2 trillion outstanding, TIPS represent a relatively small portion of the roughly $50 trillion U.S. bond market,” Therien says.

He adds that the most appropriate use of TIPS is to protect income from an upside surprise in inflation rather than to serve as a general inflation hedge. Bond markets already build in expectations for inflation, so TIPS tend to perform better when inflation is higher than investors expected.

“The opposite is also true: TIPS may underperform if inflation turns out to be cooler than expected,” Therien says.

High-Yield Savings Accounts

Want better rates than you’ll find in a typical savings account while also getting easy access to your money? A high-yield savings account may be the place to stash funds you’ll need within the next year or so.

Even though rates have come down, top-paying are currently offering 3.6% to 4% or so with full FDIC insurance and daily . “For emergency funds or near-term expenses, this is often the smartest, lowest-stress place to keep cash,” says Mike McCracken, president and founder of Wealth Guide Financial in Maple Grove, Minnesota.

Money Market Funds

Retirement investors frequently turn to for easy access, minimal risk and decent yields. However, be aware: Yields will drop if the eventually decides to cut interest rates.

“They’re still useful for very short-term cash, but I generally recommend moving money you won’t need for at least six to 12 months into slightly longer-term options, such as short CDs or fixed annuities, before yields fall further,” McCracken says.

Short-term rates still look pretty good, with cash and top money market funds yielding around 3.5% to 3.7%. That’s solid for now, but if rate cuts resume, those yields likely won’t stick around.

[Read: ]

Investment-Grade Bonds

The yield on investment-grade bonds is higher than that of Treasurys, but investors should understand that investment grade doesn’t mean risk-free. In fact, their additional yield above what Treasurys pay is intended to compensate investors for taking on the risk of corporate default, Therien says.

In other words, corporations can fail, while the federal government has more flexibility to meet its obligations. “As with any investments, holding these bonds directly can give investors maximum visibility into what they own,” Therien says.

Bond mutual funds and are often easier to use, giving investors diversification along with a clear look into holdings, credit quality and yield.

Therien suggests diversifying bond holdings across issuers, sectors and the maturity spectrum to help manage risk.

Certificates of Deposit (CDs)

With more rate cuts possible, should investors lock in higher rates now? Certificates of deposit, or CDs, are instruments that require investors to leave their money alone for a set period, so liquidity is limited.

“If you believe rates are heading lower, CDs offer an excellent opportunity to lock in today’s yields at zero market risk,” says Davis. “The trade-off, of course, is liquidity, since these assets are locked in until maturity.”

That’s why some risk-conscious investors “ladder” their CDs, buying several with different maturities to balance access and yield. But the success of that strategy depends on where rates go next. If they fall, could pay off. But if inflation forces rates higher, investors could be stuck with below-market returns.

Municipal Bonds

If you’re in a higher tax bracket, tax-free income is a pretty good deal. So why do relatively few retirees use these bonds, issued by cities, states or other municipalities?

are issued by state and local governments to fund projects like schools, roads and hospitals, and they typically pay interest that’s exempt from federal taxes. But many retirees are in low tax brackets, which reduces the benefit of municipal bonds.

“I also caution clients to look at credit quality and diversification,” McCracken says. “Not all munis are created equal, and some carry more risk than people realize.”

Fixed Annuities

Annuities can be controversial, in part because of complex features and high costs. But with markets this unpredictable, is a guaranteed income stream worth a serious look?

“When markets are volatile, retirees often shift their focus from returns to reliability,” says Tom Buckingham, chief growth officer at Nassau Financial Group in Hartford, Connecticut. “The question becomes whether essential expenses will be covered regardless of what the market does next. Fixed annuities, including that offer guaranteed income features, are designed to provide predictable income and help protect against market volatility and the possibility of outliving savings.”

He cautions that guaranteed income plays a different role than how people often think about traditional investments, in that the goal is not to . Instead, the aim is to create a stable income base in retirement.

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Update 06/04/26: This story was published at an earlier date and has been updated with new information.

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Interest rates on home loans have risen since the beginning of the U.S. war in Iran. The Middle East conflict has put upward pressure on oil prices, which can make other items more expensive to manufacture and transport. Put simply, higher oil prices mean higher inflation — and higher inflation means higher interest rates.

In fact, mortgage rates spiked after April’s consumer price index report was released on May 12, showing inflation increased 3.8% annually — the highest rate increase since May 2023. Much of that inflationary pressure can be directly attributed to rising oil prices.

“The highest mortgage rates since last August have slowed borrower demand in recent weeks … Despite the slowdown, purchase demand continues to run ahead of last year’s pace, reflecting some resiliency in the purchase market despite the higher rate environment.”

— Bob Broeksmit, president and CEO of the Mortgage Bankers Association

Most experts expect over the next few years, stuck above 6% for the 30-year fixed term. Although there’s always the chance that something unexpected could happen in the U.S. economy that could send rates tumbling lower, it’s unlikely that rates will fall below 3% or even 4% in the foreseeable future.

[Read: ]

Current Mortgage Purchase Rates

Here are today’s interest rates for conforming purchase mortgages by loan term:

— : 6.604%

— : 6.53%

— : 5.74%

— : 5.656%

— 7-year ARM: 6.843%

— : 7.176%

— 3-year ARM: 8.25%

And here are the current government-backed and nonconforming mortgage rates by loan type:

— : 6.504%

— : 5.811%

— : 5.99%

Current Mortgage Refinance Rates

Here are today’s mortgage refinance rates:

— 6.692%

— 20-year fixed refi: 6.67%

— 5.729%

— 10-year fixed refi: 6.466%

Mortgage refinance rates tend to follow the same trends as mortgage purchase rates, although interest rates on a mortgage refinance are often a few basis points higher than on purchase mortgages.

[Read: ]

Mortgage Rate Trends in 2026 So Far

collects weekly mortgage rate data, which can help provide context for mortgage borrowers on how and why mortgage rates change over time. Since the mortgage giant began collecting data in 1971, the median mortgage rate is 7.24%.

The 30-year fixed rate of 2.65% in January 2021, driving up demand for purchase and refinance mortgages. Since then, mortgage rates rose to nearly 8% in October 2023 before coming down to around 6.5% currently. Still, that’s nothing compared with the record high of 18.63% recorded in 1981.

Mortgage Monthly Payment Calculator

Your mortgage interest rate is just one aspect of your monthly housing payment. You’ll need to carefully consider how your home’s purchase price will impact your budget so you don’t buy more house than you can comfortably afford.

The mortgage term — or the length of your loan — will also significantly influence your monthly payments. Most borrowers opt for a 30-year fixed mortgage, which can keep monthly payments affordable because they are spread over a long repayment term. But if you can afford the higher monthly payments of a 15-year mortgage, it can save you tens of thousands of dollars in interest payments over time.

You’ll also need to consider property taxes, home insurance, homeowners association fees and , if applicable. You can use the calculator below to run the numbers for your financial situation.

How to Shop for a Mortgage

The mortgage rates we display on this page are national averages from lenders as provided to U.S. ²ÝÝ®´«Ã½ by Zillow, not necessarily the exact rate you’ll receive. Mortgage rates fluctuate throughout the day, and some lenders may be able to offer more favorable pricing for your situation than others.

“As rates fluctuate, aspiring buyers should remember that by shopping around for the best mortgage rate and getting multiple quotes, they can potentially save thousands,” says Sam Khater, chief economist at Freddie Mac, in a statement.

Here are a few tips to help you shop for the lowest mortgage rate possible for your financial situation:

— Get your finances in order. Collect the documents you’ll need to apply for a mortgage using . You should also check your credit score and get a copy of your credit report to see where you stand.

— Apply through three to five lenders. Be sure to consider different loan types (such as ) as well as different types of lenders (like online lenders versus credit unions). Keep your rate shopping to a two-week window to minimize the negative impact to your credit score.

— Compare loan estimates. This document will outline the loan’s costs, including origination charges, lender credits, discount points, as well as the loan’s interest rate and or APR. The APR includes the interest rate as well as any fees, making it a holistic way to compare the cost of multiple loan offers.

Check out this from the Consumer Financial Protection Bureau to get a better idea of what to expect when comparing loan offers.

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“Think of the interview as a test drive. A car can look great in the showroom, but you don’t know what it’s like on the road until you’ve been behind the wheel. The interview is your chance to help them visualize how you’ll fit in the classroom,” says Barbara Coward, founder and principal of MBA 360 Admissions.

To maximize your chance of success as an MBA applicant, consider these nine expert-backed strategies for excelling in the admissions interview.

Refresh Your Memory Beforehand

It’s likely been a while since you submitted your MBA application, so “revisit your materials, particularly your and application ,” says MBA admissions consultant Pamela Jaffe, co-founder of MBA Pathfinders.

For schools that conduct non-blind interviews, typically with admissions staff who have reviewed your application, “be sure you can speak to and defend any points in your essays,” Jaffe says.

Laura Nelson, co-founder and MBA admissions consultant for MBA Pathfinders, recommends that you “revisit your notes from conversations with students and alumni of the program so that you can discuss relevant insights as you make your case for why you’re interested in the program.”

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Prepare to Answer Tough Questions

Answer the question your interviewer asks and be ready for difficult questions.

“Practice your responses to motivational questions and behavioral questions,” Nelson says.

“Why MBA?” and “Why this school?” and “Why now?” are examples of motivational questions.

“Behavioral questions often start with the phrase ‘Tell me about a time…’ and should share a specific example,” Nelson says.

Don’t over-rehearse, since admissions committees will know, she adds. “The admissions committee is interested in meeting you, the person behind your application. It’s OK to show some personality, and you’re not expected to respond perfectly.”

Cultivate Confidence

Be sure of yourself and what you bring, experts say.

“One of my favorite defining principles … is “confidence without arrogance,” Coward says. “That’s the balance you want to strike in an interview, regardless of where you apply.”

Admissions committees value character and self-awareness as much as polish. Candidates who appear overly certain of themselves may be seen as inflexible, closed to new ideas or lacking a growth mindset, Coward says.

“If nerves are getting the better of you, here’s a reframe that helps many of my clients: think of your contribution as a gift. You’re bringing something to your future cohort that others haven’t experienced. Confidence isn’t about you, it’s about what you’re offering everyone else.”

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Develop a Clear Pitch

You should be able to clearly explain you want an MBA, what you hope to from it and what unique experiences and perspectives you will bring to the program.

Know the difference between “Tell me about yourself” and “Walk me through your resume,” Nelson says.

“Then, practice how you’ll respond. Make sure your answer is no longer than two minutes. It’s an elevator pitch. Leave them wanting more.”

Tell Success Stories

Don’t tell stories with the aim to impress, experts say.

“Tell them to help the interviewer understand who you are and what you bring to the cohort,” Coward says.

The interview is less about showcasing success and more about demonstrating how your can enrich the learning of your classmates.

“The interview is not a dog and pony show,” Coward says. “It’s a preview of how you’ll show up in a classroom of peers and how what you’ve done can help everyone else do more.”

Adjust to Your Interview Format

People often respond well to those who match their communication style and energy, so it can help to adapt to the interviewer and interview format, Coward says.

“It’s worth thinking about before you walk into any interview.”

Do some research before your interview. For example, if you’re meeting with an admissions officer, watch a video, read an article or browse their LinkedIn posts to get a sense of their communication style and priorities to better understand the conversation you’re walking into, Coward says.

“None of this is about gaming the interview. It’s about doing your homework so the conversation can be genuine so that the interviewer can easily receive and understand how you will show up on campus.”

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Be Authentic

If you’re naturally soft-spoken or come from a culture that values humility, don’t feel compelled to adopt an overly assertive style. Business schools value authenticity, not a one-size-fits-all leadership persona, Coward says.

Business schools seek diverse cohorts with varied backgrounds and perspectives. The strongest connections happen when you show up as your authentic self, she says.

“Picture an , Navy SEAL and Taylor Swift trading perspectives on a case study about Anthropic.” That’s the kind of diversity business schools intentionally cultivate, she says, “allowing students to learn from vastly different worlds and viewpoints to tackle today’s complex business problems.”

Avoid Long-Winded Comments

“This is one of the most important tips on the list, and it’s where I see applicants struggle the most in mock interviews,” Coward says.

A common interview question is, “Walk me through your resume.” If your answer takes 10 to 15 minutes in a 30-minute interview, it can signal poor judgment, she says.

“The interviewer is now thinking, ‘How are we going to get through the rest of my questions?’ They’re evaluating your judgment in real time,” Coward says.

The details that matter most to you may not be the ones that matter to the interviewer. Their goal is to quickly understand who you are, so make your story easy to follow, Coward says.

“Being efficient with your words, getting to the point cleanly, is a skill that’s deeply valued in leadership and in business.”

Ask Thoughtful Questions

Come to the interview prepared with questions to , but adjust them according to your actual conversation, experts say.

“Ask unique questions that don’t sound canned,” Jaffe says. “Be sure they are appropriate to your audience and keep your questions open-ended to be sure the interviewer can both answer them and to keep the conversation going.”

Focus on the interviewer’s experiences rather than facts you can find online.

Consider asking a question about something you’re genuinely curious about, Coward says. “The interview is about you, but it doesn’t have to be only about you. After all, the MBA is a team-based program. Show curiosity in others.”

For example, questions about how the school has evolved during your interviewer’s tenure, their favorite aspects of working there or memorable admissions experiences can lead to more authentic conversations.

“The interview isn’t a stage, it’s a conversation,” Coward says. “What you ask is just as telling as what you answer.”

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To better understand how much you may receive from Social Security at different ages, consider these factors:

— How early you can collect benefits

— The average Social Security benefit by age

— How your benefit changes if you claim early or late

— How Social Security benefits are calculated

— How spousal and survivor benefits work

— What COLA means and how it works in 2026

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How Early You Can Collect Benefits

The age at which you claim Social Security plays a major role in determining the size of your monthly benefit. While you can begin collecting benefits as early as , claiming before your full retirement age permanently reduces your payments. For example, workers with a full retirement age of 66 who retire at 62 receive 25% less, while those with a full retirement age of 67 see their benefits reduced by 30%.

“Starting at 62 makes sense for those with chronic health conditions that may lead to a shortened life expectancy,” says Bob Wood, finance professor at the University of South Alabama’s Mitchell College of Business.

To receive your full benefit, you’ll need to wait until your full retirement age, which is based on your birth year. For workers born in 1960 or later, is 67. If you opt to past your full retirement age, they will increase by 8% each year until you turn 70. “Few if any fixed investment vehicles are guaranteed to increase 8% per year,” Wood says.

The Average Social Security Benefit by Age

The Social Security Administration releases data to show how much beneficiaries receive every year. The following table shows the average benefit for individuals at different ages according to a . It notes the age of the beneficiary and the average benefit for those who were not affected by early retirement deductions or delayed credits.

The following table lists the average benefit by age for men and women who qualified for delayed credits. It is based on .

Since benefits increase if you choose to delay claiming Social Security, there may be value in waiting. You might tap in the meantime or continue earning income. “By waiting up to age 70, retirees can lock in the biggest benefit checks available based on their work records,” says Krisstin Petersmarck, president and founder of New Horizon Retirement Solutions in Bloomfield Hills, Michigan. “If longevity is a concern, having the larger Social Security benefit for your lifetime is a major plus.”

How Your Benefit Changes If You Claim Early or Late

The age that you claim benefits can make a difference in your monthly check. The following table uses SSA’s estimated 2026 average retired-worker benefit of $2,071 as the full retirement age baseline.

How Social Security Benefits Are Calculated

The is determined by a formula that uses your “average indexed monthly earnings,” according to the Social Security Administration. The calculation reflects your highest 35 years of earnings that were subject to Social Security taxes, adjusted for changes in average wages over time. If you worked more than 35 years, the SSA uses your 35 highest-earning years when calculating your benefit. The amount you earned during these working years will be added then divided by the number of months that you worked. The answer, which reflects your average wages, is rounded down to the next lower dollar amount. This figure is then used to determine the benefit you will receive.

Before you retire, you can estimate your benefit. “Understand your earnings record and review for accuracy,” says Christopher Stroup, founder and president of Silicon Beach Financial in Santa Monica, California. “Coupled with your age, your earnings record is one of the main factors that determines how large you can expect your Social Security benefit to be.”

Try to maximize the number of years you pay into Social Security. “If you plan to retire early without reaching the 35-year mark, you could be inadvertently dampening your Social Security benefit over the rest of your life,” Stroup says.

Spousal and Survivor Benefits by Age

You might be able to receive Social Security benefits based on the work record of your spouse. A surviving spouse may qualify for survivor benefits after the worker dies.

A spousal benefit can be worth up to 50% of the worker’s full retirement age benefit if the spouse claims at full retirement age. If the spouse claims earlier, the amount is reduced. SSA data shows spouses of retired workers received an average monthly benefit of $986 as of April 2026.

A surviving spouse may be able to claim as early as age 60, but claiming before full retirement age reduces the benefit. SSA says surviving spouses can receive up to 100% of the deceased worker’s benefit at full retirement age.

According to SSA data, nondisabled widow(er)s received an average monthly benefit of $1,928 as of April 2026.

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What COLA Means and How It Works in 2026

Although you’ll likely be living on a fixed income during retirement, costs tend to rise over time due to . For this reason, since 1975, the Social Security Administration has adjusted the amounts sent to beneficiaries every year. These modifications are based on increases in the cost of living and are known as cost-of-living adjustments, or .

The COLA is usually announced every October for the following year. For 2026, Social Security and Supplemental Security Income benefits increased by 2.8%. This is a reflection of the , which tracks changes in costs for everyday items such as gas, food and household items.

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In this guide, we’ll explain the three main ways anyone under age 65 can qualify for Medicare, which include:

1. Being on Social Security Disability Insurance, also referred to as SSDI, for 24 months

2. Getting a diagnosis of , also known as Lou Gehrig’s disease

3. Getting a diagnosis of , also known as kidney failure

There are some nuances to know about Medicare eligibility for individuals with disabilities, so read on for more details about what to expect and how to ensure you get the health coverage you need as quickly as possible.

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What to Know About Medicare Disability Under 65

In general, if you’re under the age of 65 and have a disability, you must meet specific eligibility criteria. This starts with receiving SSDI benefits for two years before you become .

In some cases, you may also be eligible for Supplemental Security Income, also called SSI, a federal program that provides monthly payments to cover basic living expenses such as food and housing.

Both SSDI and SSI are administered by the Social Security Administration and provide assistance to people who meet the federal agency’s requirements for disabilities.

The SSA has a five-month waiting period between applying and when eligible applicants begin receiving cash payments.

— SSDI. You and certain family members — including a spouse, divorced spouse, children under the age of 16 and adult children who were disabled before age 22 — can receive benefits if you are insured. Your eligibility is based on how long and how recently you worked and whether you paid Social Security taxes on those earnings.

— SSI. Adults and children who meet the SSA’s requirements for a qualifying disability and have limited income and resources can receive benefits from this program.

The two programs are different but have the same medical requirements. However, if your situation meets the nonmedical requirements established by the SSA, then you may be eligible for monthly benefits if your medical condition is expected to last at least a year or is terminal. You can apply for benefits via the .

RRB benefits for healthcare coverage with a disability

Another federal benefits program, the , or RRB, was established in the 1930s for railroad workers to support them when financial upheaval from the Great Depression threatened existing retirement and pension programs.

The RRB is an independent federal agency based in Chicago. It’s similar to the SSA in that the agency works directly with recipients via more than 50 field offices across the U.S. Both organizations also use the same definition of total disability and the same formula to calculate payments. To be eligible for RRB benefits, you must have worked for at least 10 years in covered service for the railroad industry or at least five years after 1995.

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List of Disabilities That Qualify for Medicare Under Age 65

The term “disabled” refers to almost any condition that results in a demonstrable disability in which you cannot perform regular, continuous work activity on a full-time basis and that has persisted or is expected to last at least 12 months, explains Kathleen Holt, a Connecticut-based attorney and the state’s healthcare advocate.

“It’s not a specific condition,” she notes. “You could have and continue to work, or you can have MS and be so incapacitated that you reach a point where you meet that criteria and you’re unable to perform regular work activity for a 40-hour workweek.”

The key to becoming eligible for Medicare benefits is having a medical condition that makes it impossible for you to work enough to access employer-sponsored healthcare benefits.

Holt notes that about 15% of Medicare beneficiaries are people with disabilities who are younger than 65.

While there’s no single list of all disabilities that qualify people under 65 for Medicare coverage, the following conditions can lead to long-term disability that may make someone eligible for coverage:

— and other forms of dementia

— Asthma

— Autism spectrum disorders

— ALS

—

— Chronic or heart failure

—

— Severe and other mood disorders

— Epilepsy

— End-stage renal disease

— HIV/AIDS

—

—

—

—

— Severe arthritis

This is not an exhaustive list of all the conditions that could result in disability that would be qualifying for Medicare coverage. Talk with your healthcare provider about whether a chronic or severe issue you’re dealing with might make you eligible for Medicare.

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How to Apply for Medicare Under Age 65 With a Disability

To become eligible for Medicare under the age of 65, there are a few steps you must follow:

— Apply for SSDI benefits

— Wait 24 months

— Enroll in Medicare

Apply for SSDI benefits

To qualify for Medicare based on disability in 2026, you’ll have to apply for SSDI benefits. The Social Security office must first recognize that you are disabled before you can being the process of applying for that Medicare coverage.

When you qualify for Medicare because of a disability, that triggers an Initial Enrollment Period (disability) that spans seven months. This is similar to the seven-month IEP that opens up for Medicare beneficiaries three months before they turn 65 and closes three months after the month in which they turned 65.

To apply for SSDI, you’ll need the following documents and information:

— Your Social Security number

— Medical from your doctors, therapists, hospitals, clinics and caseworkers that substantiate your medical issue and disability status

— Laboratory and test results

— Names, addresses, phone and fax numbers of your doctors, clinics and hospitals

— Names of all medications you are taking

— Names of your employers and job duties for the last 15 years

Wait 24 months

There is a 24-month waiting period after you start drawing SSDI benefits before you become eligible for Medicare coverage. And it’s critical to understand that this 24-month clock only starts after the Social Security Administration’s mandatory five-month waiting period for SSDI payments has completed. This means that for many people, the SSDI Medicare waiting period between your disability onset date and being covered by Medicare is effectively 29 months.

However, if you have either ALS or end-stage renal disease, the waiting period is waived. You can apply for an ALS Medicare waiver or an ESRD Medicare waiver, and that will eliminate the waiting period between application and getting Medicare coverage for these conditions. (See more about the ALS and ESRD timelines below.)

For people who need to wait two years, this period can be a hardship, Holt notes, but you can still access health insurance during the SSDI waiting period and the 24-month Medicare waiting period. This can be done via your state’s Affordable Care Act marketplace or your spouse’s employer-sponsored plan, if it covers family members.

The ACA marketplace, also referred to as Obamacare, provides private insurance options to individuals outside of traditional employer-sponsored healthcare. A critical piece of these plans is that you can’t be disqualified for a preexisting condition, and that protection applies to the disability for which you’re awaiting Medicare eligibility, Holt says.

Enroll in Medicare

Once you’re in the SSDI system and have fulfilled the 24-month waiting period, you’ll be automatically .

As you go through the Medicare process, Dr. Meena Seshamani, secretary of the Maryland Department of Health and former deputy administrator and director of the Center for Medicare at the Centers for Medicare & Medicaid Services in Washington, D.C., recommends visiting Medicare.gov’s “” page, where you’ll be guided through a series of questions about your situation to determine your eligibility and help you get enrolled.

The CMS website makes it very easy for someone to walk through enrollment and figure out their eligibility, Seshamani says.

CMS also staffs a 24/7 call center at 1-800-Medicare (1-800-633-4227) where you can ask questions and get support.

“People can call and say, ‘Hey, I want to check, am I eligible for Medicare? How can I sign up?’ and somebody can help you walk through that,” Seshamani explains, adding that CMS prioritizes helping people figure out which option is best for them.

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What to Know About ESRD and ALS Medicare Timelines

Medicare has specific waiting period exemptions for people with ALS and end-stage kidney disease. Here’s what to know about how that changes your timelines for coverage.

End-stage renal disease coverage details

People with severe kidney disease can apply for a waiver that condenses the ESRD Medicare timeline to provide retroactive coverage. For example, if you become eligible for Medicare based on ESRD in February, but don’t sign up for Medicare until November, your Medicare coverage will start in February, covering you for those months right when you first became eligible.

In addition, if you’re on dialysis, Medicare coverage usually starts on the first day of the fourth month of your dialysis treatment. This four-month waiting period starts even if you haven’t signed up for Medicare. For example, if you start dialysis on July 1, coverage beings on October 1, even if you don’t sign up for Medicare until December 1.

Medicare coverage can also begin as early as the first month of a regular course of dialysis treatment if you meet additional criteria:

— You participate in a home dialysis training program offered by a Medicare-certified training facility during the first three months of your regular course of dialysis

— You’re expected to finish training and be able to do your own dialysis treatments at home

— You maintain a regular course of dialysis throughout the waiting period

It can get complicated to follow, so talk with a local Medicare specialist or the SSDI office for more tailored advice.

ALS coverage details

If you have an ALS diagnosis, both the five-month SSDI waiting period and the standard 24-month Medicare coverage waiting period are completely waived. This means that Medicare Parts A (inpatient or hospital coverage) and B (outpatient or doctor’s visits coverage) become active the very same month your SSDI benefits begin, which happens when you’ve received a medical diagnosis of ALS.

Medicare vs. Medicaid for People With Disabilities

Medicare, which is funded through federal Social Security taxes, was originally established to provide coverage for older adults who lost when they retired at age 65. But in the 1970s, Medicare also began covering individuals under age 65 who receive Social Security disability benefits. Medicare does not have any income limits you must meet to qualify, simply an age or a qualifying disability.

, on the other hand, is a state-administered, needs-based program that serves low-income individuals regardless of age. It’s funded through a mix of federal, state and local taxes but applicants must meet specific income and asset levels to qualify. Medicaid enrollment priority is usually given to:

— Older adults

— People with disabilities

— Pregnant people

— Children and families in need

To apply for Medicaid, you’ll need to go through your local state agency that processes those requests.

In most states, if you have a disability and you receive SSI, you’re automatically eligible for Medicaid. More than one-third of Medicaid beneficiaries qualify this way, according to the Medicaid and CHIP (Children’s Health Insurance Program) Payment and Access Commission. ]

Comparing Medicare and Social Security

When considering Social Security versus Medicare, it’s important to recognize that these are two separate benefit programs from the federal government. Social Security provides financial support, whereas Medicare is health insurance coverage. These two safety net programs work together to support people with disabilities to remain as healthy as possible.

As mentioned, for someone looking to gain health insurance coverage via Medicare because of a disability, they must first apply for disability benefits from Social Security.

Where to Get Help With Medicare Enrollment

Regardless of age or disability status, many people can benefit from guidance when first getting enrolled in Medicare or when making changes during an . The great news is that this type of help does exist and is free.

In addition to the services available at CMS, the — a grant-based program in every state, Washington, D.C., Puerto Rico, Guam and the U.S. Virgin Islands — can help enrollees.

“The whole point of our SHIP programs is to have individuals locally available to provide in-depth, one-on-one assistance in navigating and enrolling in Medicare,” says Rebecca Kinney, director for the Administration for Community Living’s Office of Health Care Information and Counseling in Washington, D.C.

You can find your local program and set up an appointment from SHIP’s website. During your appointment, a SHIP counselor will go over all your options and help you apply for Medicare.

“There’s a lot of choices and things that can be really overwhelming,” Kinney explains. “That’s what SHIP is there (for) — to help them try to sort through and navigate.”

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A better option is a cashier’s check. You may have to pay a small fee to get one, but it can be well worth the cost and extra effort to make your financial transaction faster and safer.

What Is a Cashier’s Check?

A cashier’s check, sometimes known as an official check, is a paper check that’s drawn against your bank’s account rather than your personal account. Your bank stands behind the check and guarantees that the recipient, or payee, can deposit or cash it and receive the promised funds. You must have enough in your personal account to cover the amount of the cashier’s check you request.

Recipients may prefer cashier’s checks because:

— They’re secure. A cashier’s check is almost equivalent to cash, but the risk of theft is lower because only the payee can deposit a cashier’s check.

— They’re guaranteed. Unless a cashier’s check is fraudulent, there’s almost no risk that it will be declined, or “bounce.”

— They’re fast. Banks must make the first $5,525 available within one business day. However, additional funds or amounts the bank suspects may be fraudulent may be held longer.

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The name “cashier’s check” refers to the bank’s teller, who may also be called a cashier.

Despite the name and the association with banks, it’s not only banks that issue cashier’s checks. also offer them.

Where to Get a Cashier’s Check

You can get a cashier’s check from a bank or credit union you have an account with. You may have the option to request a cashier’s check from your online account, or you can visit a branch to get a check. Some banks may have a limit on how much you can request for a cashier’s check online. For example, Wells Fargo requires members to come into a branch for a cashier’s check worth more than $2,000.

How Much Do Cashier’s Checks Cost?

Expect to pay a fee of about $8 to $15 to get a cashier’s check from your bank or credit union.

How to Get a Cashier’s Check

Follow these steps to get a cashier’s check:

1. Go to your bank or credit union, or contact it online. Bring a government-issued ID with you to the bank, such as a driver’s license or passport.

2. Tell the bank the amount of the cashier’s check and the recipient’s name. Both will be printed on the check.

3. Ensure your checking account has sufficient funds to cover the cashier’s check. If the account doesn’t, then make a deposit or transfer to cover the amount.

4. Pay your fee and receive your cashier’s check. If you don’t do this in person, the bank will mail you the check. You’ll need a U.S. mailing address to receive it. You can’t print cashier’s checks yourself at home.

Most banks issue cashier’s checks only to their own customers, so you’ll typically need an account to get this type of check from a bank. Credit unions often will issue cashier’s checks to members of other credit unions and their members.

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Cashier’s Check Alternatives

Cashier’s checks, money orders and certified checks are all alternatives to personal checks and paper money. They have that in common, yet there are some differences, too.

Certified Check

Like a cashier’s check, the bank guarantees a certified check. The bank verifies that the check writer’s account contains the funds to back the certified check and keeps the funds in the account until the check is deposited or cashed.

“A certified check is a check that’s drafted against your account but certified by the bank as being payable, i.e., from a valid account with sufficient funds,” says Leibel Sternbach, a financial advisor and founder of Yields4U, an investment advisory firm in Plainview, New York.

The difference between a cashier’s check and certified check is that the funds to pay the cashier’s check come directly from the bank, rather than the check writer’s account.

Money Order

“A money order is the equivalent to cash,” Sternbach says.

may be purchased with cash or a debit card. They’re available not just from banks and credit unions, but also from nonbank outlets, such as Western Union, the U.S. Postal Service and some retailers. They’re usually limited to $1,000.

Unlike with a cashier’s check or certified check, which is printed with the recipient’s name when issued, you fill in the name of the person or entity receiving the money order.

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When Should You Use a Cashier’s Check?

You may want to use a cashier’s check, or you may have to, for transactions that involve a large sum of money or transactions that call for an added layer of trust, such as:

— Buying a vehicle

— Closing on a house.

— Transactions beyond the limits of your credit or debit card

How Can I Cancel a Cashier’s Check?

It’s difficult to order a stop payment on a cashier’s check. However, you can contact your bank to request a cashier’s check cancellation, and it may be allowed if you are dealing with loss, theft or fraud.

You’ll likely need to file a declaration of loss with the bank, which states that you lost possession of the cashier’s check. You may also be required to purchase an indemnity bond, which protects the bank if a lost cashier’s check is presented for payment. After that, you’ll get your funds back within about 90 days.

How Long Is a Cashier’s Check Good For?

The expiration date on a cashier’s check depends on the bank. Some cashier’s checks have a “void after X days” disclaimer, usually between 60 to 180 days. Other cashier’s checks have no expiration date and should remain valid as long as the bank operates.

Watch Out for Cashier’s Check Scams

Cashier’s checks are popular with scammers, so you should be wary if you receive one. Typically, these scams ask you to deposit a cashier’s check and send payment as a refund or to a third party, but you won’t get any money from the fraudulent cashier’s check and will lose the money you send.

Some typical cashier’s check scams include:

— Online purchases. A scammer may pay using a fraudulent cashier’s check, and you don’t find out it’s a fraudulent check until you ship the goods. Additionally, a scammer may send funds over the purchase price and ask you to “refund” the excess.

— Foreign lottery or estate beneficiary. A scammer may inform you that you’ve won a foreign lottery or are the beneficiary of an estate but must pay a tax or fee before receiving funds. The scammer will send you a cashier’s check to cover the fee and ask you to deposit the check and wire the fee to a third party.

— Mystery shopping. A scammer may ask you to perform as a mystery shopper, using a cashier’s check to pay you and reimburse you for your mystery shopping purchases, but you’ll also have to transfer some of the funds to a third party while keeping what’s left.

Ron Strobel, a financial planner and founder of Retire Sensibly, an investment advisor in Idaho, explains how scammers can pressure you to cash a fraudulent cashier’s check and send funds:

“The scammer might create urgency by saying they accidentally sent too much money and they need it back urgently for something important like paying their rent,” Strobel says.

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[]

Drilling down further, data from Invesco reveals the Nasdaq-100 has also consistently outpaced the Russell 3000 index, which tracks the investable U.S. stock market, over incremental periods through April 29, 2026:

Still, investors seeking exposure to the Nasdaq-100 had only a handful of options to consider, the category leader being the Invesco QQQ Trust (ticker: ). Those options are beginning to change.

In April 2026, asset management heavyweights BlackRock Inc. () and State Street Corp. () filed plans with the Securities and Exchange Commission to launch competing Nasdaq-100 exchange-traded funds, challenging Invesco’s long-standing dominance in one of the ETF industry’s most popular categories. The filings came after Nasdaq expanded licensing of its flagship index, opening the door to greater competition and investor choice.

QQQ still dominates for now. The fund has delivered annualized returns of more than 21% over the past decade through April 29, 2026. Its one- and five-year returns were 41.1% and 15.3%, respectively through the same date, according to Invesco. Any advisory fees charged by an investor’s individual manager would reduce these returns further.

Yet, its success has also manifested one of the Nasdaq-100’s biggest risks: concentration. More than 30% of QQQ’s assets are currently invested in just five companies: Nvidia Corp. (), Apple Inc. (), Microsoft Corp. (), Micron Technology Inc. () and Amazon.com Inc. ().

As a result, some investors are looking for Nasdaq exposure on different terms, like lower fees, less concentration in mega-cap , broader diversification or a competitive stream of income. Here are five ETFs worth considering beyond QQQ:

— Invesco Nasdaq 100 ETF ()

— First Trust Nasdaq-100 Select Equal Weight ETF ()

— JPMorgan Nasdaq Equity Premium Income ETF ()

— Vanguard Growth ETF ()

— Fidelity Nasdaq Composite Index ETF ()

Invesco Nasdaq 100 ETF ()

Expense ratio: 0.15%

Why investors should consider it:

— Tracks the same Nasdaq-100 index as QQQ at a lower cost.

— Holds the same underlying companies, providing nearly identical performance.

— Offers long-term investors a simple way to reduce expenses without changing their investment strategy.

Potential drawback: While less expensive than QQQ, the fund can possess concentration and sector volatility risks and is more suitable for investors.

First Trust Nasdaq-100 Select Equal Weight ETF ()

Expense ratio: 0.55%

Why investors should consider it:

— Reduces concentration in mega-cap technology stocks by giving each holding a similar weight.

— Provides broad exposure to smaller Nasdaq-100 constituents that are often overshadowed in cap-weighted indexes.

— Could benefit if market leadership broadens beyond the .

Potential drawback: The fund’s high expense ratio may offset some diversification benefits over time.

JPMorgan Nasdaq Equity Premium Income ETF ()

Expense ratio: 0.35%

Why investors should consider it:

— Seeks to generate income through a covered-call strategy while maintaining exposure to .

— Using derivatives, the fund also seeks less volatility than traditional Nasdaq-100 ETFs.

— Offers an alternative for investors who want both technology exposure and current income.

Potential drawback: The options strategy may limit upside participation during strong market rallies.

Vanguard Growth ETF ()

Expense ratio: 0.03%

Why investors should consider it:

— Provides exposure to many of the same growth companies found in QQQ while broadening diversification beyond the Nasdaq exchange.

— Features one of the lowest expense ratios among growth-oriented ETFs.

— Includes leaders across technology, and consumer sectors.

Potential drawback: Because this fund is not tied directly to the Nasdaq-100, investors may experience performance that differs from the index.

Fidelity Nasdaq Composite Index ETF ()

Expense ratio: 0.21%

Why investors should consider it:

— Tracks the broader Nasdaq composite, providing exposure to more than 1,000 companies.

— Includes large-, mid- and small-cap stocks, creating a deeper opportunity set than the Nasdaq-100.

— Gives investors access to emerging companies that could become tomorrow’s market leaders.

Potential drawback: The fund’s broad portfolio may dilute returns when the largest Nasdaq stocks are driving market performance.

Takeaway

While QQQ remains a popular ETF among many investors, it is not the only way to access the growth potential of the Nasdaq-100. Investors can choose from lower-cost options, equal-weight strategies that reduce dependence on mega-cap technology stocks, income-oriented funds and broader Nasdaq offerings.

The recent entry of firms such as BlackRock and State Street suggests competition in the Nasdaq ETF space is only beginning. That’s good news for investors. More competition often leads to lower fees, greater innovation and more choices. The best Nasdaq ETF isn’t necessarily the largest or most popular, but rather the one that best aligns with your investment goals, risk tolerance and portfolio needs.

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All We Know About the Changes

Cardholders of select Delta SkyMiles cards now receive complimentary second checked bags on eligible domestic Delta flights. The second checked bag benefit applies to:

— ($0 introductory annual fee for the first year, then $150.)

— ($350 annual fee)

— ($650 annual fee)

— ($0 introductory annual fee for the first year, then $150)

— ($350 annual fee)

— ($650 annual fee)

On domestic flights, Delta Air Lines’ checked bags generally cost $45 for the first and $55 for the second. You’d save $200 on a round-trip flight, and could save even more if you travel with family, friends or colleagues, as the benefit applies for up to nine passengers on the same reservation.

Enrolled cardholders of the Delta SkyMiles® Gold American Express Card and Delta SkyMiles® Gold Business American Express Card receive a new $120 annual rideshare credit after card renewal, which offers up to $10 in monthly statement credits for eligible U.S. rideshare purchases with select providers.

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Limited-Time Welcome Offers

The refreshed cards have limited-time welcome offers available through July 15:

— Delta SkyMiles® Gold American Express Card – Limited Time Offer: Cardholders earn 70,000 Bonus Miles after you spend $3,000 in purchases with your new Card, and an additional 20,000 bonus miles after you make an additional $2,000 in purchases on the Card, both within your first 6 months. Ends 07/15/2026

— Delta SkyMiles® Platinum American Express Card – Limited Time Offer: Cardholders earn 80,000 Bonus Miles after you spend $4,000 in purchases with your new Card, and an additional 20,000 bonus miles after you make an additional $2,000 in purchases on the Card, both within your first 6 months. Ends 07/15/2026

— Delta SkyMiles® Reserve American Express Card – Limited Time Offer: Cardholders earn 100,000 Bonus Miles after you spend $6,000 in purchases with your new Card, and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card, both within your first 6 months. Ends 07/15/2026

— Delta SkyMiles® Gold Business American Express Card – Limited Time Offer: Earn 90,000 Bonus Miles after spending $6,000 in purchases on your new Card in your first 6 months of Card Membership. Offer ends 7/15/26

— Delta SkyMiles® Platinum Business American Express Card – Limited Time Offer: Earn 100,000 Bonus Miles after spending $8,000 in purchases on your new Card in your first 6 months of Card Membership. Offer ends 7/15/26

— Delta SkyMiles® Reserve Business American Express Card – Limited Time Offer: Earn 125,000 Bonus Miles after spending $15,000 in purchases on your new Card in your first 6 months of Card Membership. Offer ends 7/15/26

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While investors often get drawn in by megatrends like or , established companies with strong balance sheets and proven brands should not be overlooked. Even if they may rarely be the top performers, these stocks are go-to investments because of their consistency and the peace of mind they provide in times of volatility.

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Although no stock is risk-free, the following blue-chip companies stand out for their market leadership, financial stability and ability to remain relevant over decades of change on Wall Street:

*As of June 3 market close.

Altria Group Inc. ()

Altria is a blue-chip mainstay that has thrived despite decades of specialization in admittedly unhealthy tobacco products. As proof, the company has increased its dividend for 57 consecutive years to offer unrivaled income potential for shareholders. Recently, the company has expanded beyond traditional tobacco through investments in vaping and nicotine pouches, helping diversify its revenue base and ensure relevance for decades to come. A dependable business model and generous dividend make Altria an attractive option for investors seeking the best blue-chip stocks to buy now.

Apple Inc. ()

Apple is one of the most dominant brands in the world. Its iconic iPhone, iPad and Mac products have created a loyal customer base that continues to generate enormous revenue even without new hardware sales. Its App Store, Apple Pay, iCloud and Apple TV generate about a quarter of all AAPL revenue — to the tune of more than $100 billion annually. These high-margin services, plus an iconic smartphone line, make Apple a hard company to unseat and a stable investment for .

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Costco Wholesale Corp. ()

Costco has built one of the most successful retail models in the world by combining low prices with a membership-based business structure. Its loyal members total more than 80 million, and at $65 apiece those memberships provide a steady stream of recurring revenue before the company sells a single product. What’s more, high customer retention and a model built on low-cost staples mean COST shares can hang tough even in challenging market environments. Costco’s disciplined management, growing membership base and strong financial performance make it a standout investment for any portfolio.

Eli Lilly and Co. ()

Eli Lilly is one of the most dominant in the healthcare sector, fueled by the success of its weight-loss and diabetes medications like Mounjaro and Zepbound. The company also has a strong portfolio of treatments across oncology and other major therapeutic areas, and a strong pipeline of future products supported by a long history of medical innovation. Founded in 1867 but still one of the largest and most innovative companies in the sector, LLY is a blue-chip stock to buy now.

Johnson & Johnson ()

Another go-to , Johnson & Johnson is one of the 25 largest U.S. stocks and is one of the most respected companies in the world. J&J is one of only two U.S. companies with a AAA credit rating (Microsoft is the other), highlighting its exceptional financial strength, and it boasts more than six decades of consecutive dividend increases. Only a stock with consistent profitability and reliable operations could achieve those milestones — and with a defensive business model that doesn’t rely on consumer spending or manufacturing confidence, J&J remains a stock that conservative investors love.

JPMorgan Chase & Co. ()

JPMorgan Chase is the largest U.S. bank and one of the most influential financial institutions in the world. The bank has repeatedly demonstrated its ability to navigate challenging economic environments, most notably during the 2008 financial crisis and a short-lived disruption to regional banks in 2023, using those periods to make fire-sale purchases and only strengthen its position further. This megabank’s combination of stability, profitability and makes it a foundational holding for long-term portfolios.

Microsoft Corp. ()

Microsoft remains one of the most important in the world, and is one of the five largest stocks on Wall Street with a valuation north of $3 trillion. While products such as Windows and Outlook software continue to generate significant revenue, it’s really the cloud computing segment that has become a major growth engine for MSFT. Its Azure platform is one of the leading cloud-services businesses globally, commanding roughly 20% global market share, and continues to deliver as companies invest in digital infrastructure and artificial intelligence.

The recent acquisition of Activision Blizzard has also bolstered Microsoft’s Xbox gaming arm to make it one of the three largest studios in the world, giving investors one more reason to depend on this stock to perform in the years ahead.

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NextEra Energy Inc. ()

NextEra Energy is the largest publicly traded in the U.S. and serves roughly 12 million customers in and around Florida. Utilities are often considered because demand for electricity remains relatively stable regardless of economic conditions. NextEra enhances that stability with a strong commitment to renewable energy, including industry-leading investments in wind and solar generation, that will keep its power generation portfolio relevant in the age of climate change. NEE remains one of the most reliable blue-chip stocks on Wall Street thanks to this combination of reliable cash flow, dividend growth and a highly regulated business with a wide moat.

Visa Inc. ()

Visa sits at the center of the global shift toward digital payments, operating one of the world’s largest payment-processing networks. Every year, more than $14 trillion — yes, with a “t” — flows through its network thanks to branded cards, mobile payments and other technologies. And while the company only makes a tiny fee for each one of those transactions, the scale makes this business really add up. With a trusted global brand, expanding digital-payment adoption, and a growing international footprint, Visa remains one of the strongest for long-term growth.

Walmart Inc. ()

Walmart is the world’s largest retailer, making it one of the most entrenched businesses on Wall Street. Its enormous scale provides purchasing power and supply-chain advantages that facilitate low prices, making it a go-to store for consumers in tough times. The company is the largest grocery retailer in the U.S., and has also become a major force in e-commerce with operations that rank only behind behemoth () in the U.S.

Walmart’s business remains highly defensive thanks to its scale, digital expansion and market leadership. All that makes it one of the best blue-chip stocks to buy now.

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Dental coverage is part of the appeal of getting a , known as Part C. Many Medicare Advantage plans offer dental coverage and are quick to promote that — but don’t let that alone be a deciding factor.

“Medicare Advantage plans are popular today, with over half of all Medicare beneficiaries enrolled, but can vary quite a bit from one plan to another,” says Whitney Stidom, vice president of consumer enablement with eHealth, a health insurance broker and online resource provider headquartered in Santa Clara, California. “I wouldn’t recommend beneficiaries enroll in Medicare Advantage solely because they want dental benefits. However, if they find that Medicare Advantage is the best option for their overall health care needs and budget, it is a good idea to look for one that also includes dental coverage.”

Still, other Medicare recipients opt to buy a separate dental plan to cover their needs.

So, if you’re looking for some sort of dental care, here’s what you need to be thinking about.

At a Glance: Medicare Coverage for Dental Care

Is Dental Coverage Worth It?

Yes, dental coverage is worth it. It doesn’t really matter if your teeth look like you were on the losing end of a boxing match, or if you flash a smile that belongs in a teeth whitening commercial — either way, it’s hard to argue that you shouldn’t have dental coverage. Poor oral health has been connected to everything from diabetes to cardiovascular disease, strokes, , and even cancer.

So if you want to , you’re going to have to find a stand-alone dental insurance plan or a Medicare Advantage plan.

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How to Assess Your Dental Needs

Before you , you really should think about what you want out of dental insurance coverage. There are a number of criteria you may be particularly interested in:

— $0 premiums. If money is an issue, finding a plan with $0 premiums may be a top priority. However, “It’s important to look at , copays, coinsurance and annual maximums, rather than only the premium,” Stidom advises. “A lower-premium plan might cost more overall if it has high out-of-pocket expenses when you need dental care.”

— High annual benefit limits. The annual benefit limit is the most an insurance company will pay for your treatment within a year. So if you’re worried you may be in for a considerable amount of dental expenses, way beyond what an insurer will pay for an annual exam and some X-rays, you might want to prioritize this instead of, for instance, $0 premiums.

— Coinsurance. This is the portion of your insurance that you’ll pay after you meet your deductible. You’re sharing the cost of the dental work at that point, and if, for instance, your insurance is going to pay 80% of a root canal, you still are responsible for 20%. If that makes you uncomfortable, you may want to prioritize what you pay for coinsurance rather than focusing on the annual benefit limits or the size of your premium. Really, as Stidom says, you want to look at the entire picture and probably aim for a healthy balance when it comes to determining how much you should pay for dental coverage.

— Availability. Your dental coverage doesn’t do you much good if your isn’t in your plan’s network. Remember to call your dentist and ask if they take the dental plan you’re considering. You may still be able to see your dentist if they’re not in-network, but you may need to pay a higher coinsurance and you may be balance billed (meaning you may need to pay the difference between what the dentist charged and what your insurance was willing to pay).

— Comprehensive or basic. Some Medicare Advantage plans only offer preventive help, paying for annual exams and X-rays. That certainly can help with your budget, and you may feel like that’s all you want covered and you’ll take care of the rest if you have cavities or other issues. However, if you do have a track record of tooth decay or believe fillings, , crowns, and gum disease could be in your future, you probably will want to consider getting a plan that offers comprehensive care.

[SEE: ]

Key Factors to Compare in a Plan

It isn’t hard to find a Medicare Advantage plan that covers oral health.

“It seems like every Medicare Advantage plan is now offering some sort of dental benefit,” says Mara Woloshin, an insurance broker, certified retirement coach and consultant based out of Portland, Oregon.

But it is hard to find a Medicare Advantage plan that generously pays for everything beyond cleanings and basic treatment.

“While most plans are sticking to preventative dental, some plans have capped limits and are combining comprehensive and preventative dental under one cap, like $1,000 total,” Woloshin says.

Stidom adds that “it’s important for beneficiaries to understand that dental insurance works differently than health insurance. It’s not open-ended coverage. Dental plans provide specific, defined benefits on a specific calendar-year basis, including for preventive cleanings, fillings and crowns, root canals and more. Some dental plans have waiting periods, requiring enrollees to pay their premiums for a certain number of months before services are covered.”

It’s also worth noting that if your health is poor, you may be able to find more dental coverage than you might imagine in a Medicare Advantage plan.

“The really good news for those who may have diabetes or heart disease are Medicare Advantage chronic ,” Woloshin says. “For a modest premium, like $26 monthly, this group of beneficiaries can enjoy as much as $3,500 for dental and $0 for any and all .”

She adds that these plans require a diagnosis verification from an attending physician.

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How to Find and Buy a Medicare Plan

If you currently have a dentist, ask the office manager what plan they would recommend. You should quickly get an earful on which Medicare Advantage plans work well in the office and which don’t, due to .

A , however, can also recommend a variety of Medicare Advantage plans and, if you tell them what you’re looking for, hopefully steer you to a good one.

In addition, use resources like a to compare options and find the best fit. is a volunteer-staffed free helpline for seniors, their families and who need help with Medicare questions and problems.

Bottom Line

If you are getting Medicare or already have it, and you want your dental work to be paid for, you can certainly find good coverage. But in the spirit of the dentist’s office, you may have to do a lot of drilling into the details before you find one you’re satisfied with.

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Why It Makes Sense to Lock in CD Rates Now

The Federal Reserve held its benchmark interest rate steady in April after trimming it three times to end 2025. The federal funds rate remains in the 3.50% to 3.75% target range, which is relatively high. With reports indicating that inflation is rising, forecasters generally anticipate that the Fed will either leave its rate unchanged or potentially raise it later this year. That’s a shift from earlier this year, when many observers predicted further rate cuts.

Despite the three consecutive Fed rate cuts last fall, average CD rates nationwide haven’t experienced a dramatic drop. The average six-month CD rate paid 1.35% in May, while the one-year rate stood at 1.55% and the five-year rate was 1.34%, according to the FDIC. Those figures get dragged down by CD rates at major banks that typically pay close to zero interest, so you should shop around for a much higher rate than the national average.

“The national average CD rate tells you very little about the earnings opportunities actually available to you,” says Mary Grace Roske, head of communications at CD Valet, a comprehensive CD marketplace that provides verified CD rates from federally-insured banks and credit unions. “Right now, the gap between average bank rates and the most competitive offers is nearly three percentage points, depending on the term. The best way to close that gap is to compare across multiple institutions, not just the bank you already use. Oftentimes, you can find more attractive offers from internet banks or community financial institutions.”

Rates on high-yield CDs dipped in the weeks surrounding the Fed’s September rate cut, according to a . They dropped again slightly following cuts in October and December. However, some banks have continued to offer generous rates on certain terms, which is why it is particularly important to compare multiple institutions before selecting your CD.

In fact, you can still find short-term and long-term CDs that pay an annual percentage yield of 4% or higher. For example, a six-month CD at Popular Direct yields 4.10% APY, while a five-year CD at Sallie Mae pays 4% APY.

Lower rates make borrowing easier and more affordable but tend to bring lower yields for savings products.

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Why the One-Year CD May Be Your Best Bet Right Now

If you agree with forecasts that suggest the Fed will likely hold its rate steady in the coming months before potentially raising it later this year, then the one-year CD may be an ideal term to choose. This term provides flexibility should rates increase, while also giving you the best rates available.

U.S. ²ÝÝ®´«Ã½ tracks CD rates at a dozen institutions that regularly offer the highest yields, and one-year CDs are averaging 3.67% APY, the highest mark they’ve hit so far this year. Meanwhile, six-month terms for high-yield CDs have dropped in recent months and have now fallen below one-year offerings. Longer-term CDs at these institutions have declined slightly this year, with the five-year rate currently averaging 3.32%.

and Popular Direct are both paying above 4% for one-year CDs.

Short-Term vs. Long-Term CD Rates

may offer you higher rates than a savings account. The tradeoff is that you must not touch the money you put into a CD for the set term. Doing so would trigger an early withdrawal penalty, which varies by financial institution. But is it

You have the flexibility to choose a CD term that works with your timeline and goals, whether that’s three months, six months, one year or five years. Generally, banks reward you with a higher if you opt for a longer term. That gives banks a longer runway to use your funds. However, that’s not the case right now.

For the last several years, short-term CDs have been offering higher APYs than what you might find with long-term CDs. For example, currently has a one-year CD offering 3.70% APY. The five-year CD has an APY of 3.40%.

But why are CD rates lower for longer terms right now? In technical terms, we have an inverted yield curve. With a normal yield curve, investors get rewarded with higher rates for tying up their money longer and taking on extra risk. After all, many variables affect interest rates, and the economy can change a lot over time. But when the yield curve inverts, investors believe that the economy may be weakening and that the Fed will be cutting rates. And according to the Fed, an inverted yield curve is a “powerful predictor of future recessions.”

Given the current economic climate, the federal funds rate is currently high in an attempt to combat persistent inflation. Banks feel comfortable offering higher rates now to track today’s higher federal funds rate.

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CD Laddering Can Help You Diversify

If you want to diversify your savings strategy, consider a . Through a CD ladder, you invest your funds in CDs with different term lengths. Normally, you’d divide the amount equally over the various CD terms, but you don’t have to do it that way.

If you receive an especially large tax refund, you may want to consider spreading your funds across multiple term lengths as part of a CD ladder, Roske says.

A CD ladder ensures you’re maximizing rates and access to funds. Typically, this helps you get your money faster if you need it while securing higher rates in the longer term.

“The ladder’s interesting because typically the premise of the ladder is that you would have two or three different CDs and step one is the lowest rate, step two is the middle rate, step three is the highest rate,” says Derik Farrar, head of personal deposits at U.S. Bank. “Now, you could find a high six-month rate and an acceptable 12-month rate, and maybe there’s a nine-month or an 18-month in between. But most of the market is concentrated where the attractive rates are under 12 months in duration.”

Once your CD term reaches maturity, you can reinvest those funds in a new CD to maintain your ladder. Of course, you don’t have to use this strategy and can cash out when the CD matures or choose different terms. Make sure you plan for that, as some CDs have automatic renewal at maturity.

What to Consider Before Opening a CD

Now is a good time to lock in a high APY with a certificate of deposit. You can use a CD ladder to secure the best short-term CD rates and long-term CD rates. But before locking rates, understand you’re tying up your money.

“I always ask, ‘Do you need this money?’ I even ask members, ‘When’s the last time those little emergency things have happened in your life? When did the water heater go out? Are these the funds that you would use for that particular purpose?'” Gravitt says.

While CD accounts can be a safe way to earn a solid return, you also want to make sure you have accessible cash in an emergency savings fund. Typically, is a good option for that. You can use both of these accounts for different purposes.

Farrar suggests consumers “need to know what they’re saving for and if they’re just maximizing for yield or if there is a particular life event that they’re saving for.”

For example, there’s a difference between wanting the best possible rate for its own sake compared to locking away funds for two years that are intended as a down payment on a home. If you do have a goal in mind, choose a CD term that aligns with that goal and keep your money growing.

The Bottom Line

Certificates of deposit can be a great addition to have on top of a high-yield savings account. CDs typically give you a fixed rate, while savings accounts have a variable rate. When shopping around for CDs, compare APYs and CD terms lengths.

Look at minimum deposit requirements as well. For example, offers no minimum deposit, while requires a $2,500 minimum opening deposit for CDs. Read the fine print and understand CD early withdrawal penalties. Once you decide where to park your cash, you can open a CD and reap the rewards.

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