It’s that time of year again when we move the clocks forward and welcome the start of spring. For many of us, it’s a nice break from winter, and we hope this message finds you doing well as we head further into 2026.

One topic we’ve been watching closely lately is interest rates. After peaking in 2023, rates have retreated, and many economists expect that trend to continue. Accordingly, we thought it would be helpful to share a few thoughts on what we’re seeing in the fixed income space—especially with savings accounts, CDs, and other cash holdings.

Over the past few years, higher interest rates made it very attractive to keep cash in savings accounts, money markets, and short-term CDs. Many of our clients benefited from those higher yields, which was a great place to be while rates were elevated. As rates gradually move lower, however, those same accounts typically see their yields come down as well.

This is often a good time to start thinking about how to lock in some of the higher rates that are still available or explore other options that may provide more consistent income going forward.

For example, extending the time horizon on savings—such as moving from short-term CDs to longer-term options—can sometimes provide a higher rate. In some situations, fixed annuities are also offering attractive rates and may provide the added benefit of tax-deferred growth. Another option we often discuss with clients is shifting a portion of cash holdings into a fixed income bond strategy. Bonds can offer competitive yields and may benefit in a declining interest rate environment.

Of course, every situation is different, and the right approach depends on your overall financial plan and goals. If you’d like to review your current allocation or talk through some of these ideas, please reach out to your advisor.