3 moves that could have a big impact on your savings this July

Putting money aside for emergencies — and for your future — is important. And, it's also important to make good decisions with the money in your savings to ensure that you earn a strong return, especially in the midst of today's inflationary environment. 

But, it can be hard to make the right savings decisions, especially in today's unusual economic climate. So what moves could have a big impact on your savings this July? Here's what you should know. 

Earn more on your savings with a high-yield savings account now.

3 moves that could have a big impact on your savings this July

Here are three moves to make that could have a big impact your savings this July: 

Switching from a variable-rate account to a fixed-rate option

Interest rates are high at the moment, and many high-yield savings accounts (and other variable-rate accounts) offer rates that are hard to pass up. But, keeping your money in a variable-rate account may be risky right now. 

After all, the federal funds rate could start to come down soon, especially if inflation continues to cool. And, if that happens, banks could cut the annual percentage yields being offered on variable-rate savings options, like high-yield savings accounts. 

So, while those accounts may be attractive, locking in your interest rate with a fixed-rate account like a certificate of deposit (CDs) may be the better choice this July. That way, if rates decline, you'll continue to earn the same high rate until your account reaches maturity.

Lock in today's high returns with a CD now. 

Making room for savings in your budget

Thanks to inflation, prices are quite a bit higher today than they were a year or two ago. And, the higher cost of groceries, gas and housing may be stretching your budget, leading you to prioritize other expenses over savings in your budget. 

But it's important to earmark the money for your savings in your budget to ensure that you're building a financial cushion that can help you cover unexpected expenses, temporary losses in income or other financial hurdles — even with inflation driving up the prices of consumer goods. 

So, how do you account for savings if your budget is tightening? One option is to look for opportunities to cut your other expenses. For example, you may want to switch to generic products when possible, like generic medications, which are typically manufactured with the same active ingredients as brand-name options but may offer significant savings. The money you save can then be earmarked for savings, ensuring that you're consistently building up a safety net just in case. 

Diversifying your savings strategy

Given the potential impacts that inflation, interest rate changes and other economic events could have on your savings this July, taking steps to diversify your savings strategy may be more crucial than ever. After all, a diversified approach can help protect your savings from various economic risks and potentially enhance your overall financial stability.

So, make sure that you're not just relying on a single savings strategy right now. Instead, consider putting your savings into a mix of high-yield savings accounts, money market accounts and CDs to balance liquidity and higher returns. You may also want to balance your savings between short-term needs and long-term goals. This might mean keeping some funds in liquid accounts for near-term expenses while investing others for long-term growth. 

While these and other diversification strategies won't guarantee profits or protect against losses, they can help manage risk and potentially improve your overall financial resilience.

Start diversifying your savings strategy with the right CD account today. 

The bottom line

Saving money is important, but so is optimizing your savings strategy to ensure it works best in the current economic environment. This July, you may want to take a few steps to ensure that's the case, like moving your savings from a variable-rate account to a fixed-rate option, ensuring that there's room in your budget for your savings and making sure that you're taking a diversified approach. That way, you can ensure that the money in your savings is working well for you.